The Telstra Corporation Ltd (ASX:TLS) share price has dropped a further 7 cents on Tuesday morning, now trading at $2.97, down almost 2.3 per cent on the day.
The latest fall in Telstra shares comes a day after the telco giant downgraded its profit guidance.
The last time the Telstra share price traded below $3 was back in August 2011.
The AFR is reporting Telstra chief executive Andy Penn is under “growing pressure to more aggressively tackle a squeeze on earnings from intensifying mobile competition and shrinking margins on the National Broadband Network.”
Over the past 12 months, the Telstra share price has now fallen almost 33 per cent.
The only saving grace from yesterday’s downgrade was Telstra reiterating it was committed to this year’s fully franked dividend being 22 cents per share. But after that, all bets are off, with the future dividend being dependent in the company’s underlying level of earnings.
With the Telstra share price under pressure, the dividend looking shaky, and increased competition on the way in mobile when TPG Telecom Ltd (ASX:TPM) launch its service, the outlook looks grim.
Long-suffering Telstra shareholders who are looking for alternative investments, here are 3 dividend alternatives.