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Telstra and Mineral Resources: Contrasting Fortunes on the ASX
Telstra offers a 3.6% yield and solid ROE; Mineral Resources grew revenue 12% but saw profits plunge. Here's what the numbers say.
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Telstra Group Ltd and Mineral Resources Ltd are two ASX-listed companies with very different profiles. Telstra, Australia's largest telecom, operates as a mature dividend payer. Mineral Resources, a diversified miner focused on lithium and iron ore, is more of a growth story.
Telstra, founded in 1975, serves over 22.5 million retail mobile accounts and covers 99.6% of the Australian population. It delivers 5G to more than 85% of the country. The company's scale gives it a wide moat in telecom infrastructure.
For fiscal 2024, Telstra reported a debt-to-equity ratio of 99.4%, meaning equity slightly exceeds debt. Over the past five years, the stock has delivered an average dividend yield of 3.6% a year. Return on equity came in at 10.7%, above the 10% threshold often used for established businesses.