TPG Telecom Limited (ASX:TPG) stock is about to trade ex-dividend in two days. The ex-dividend date generally occurs two days before the record date, which is the day on which shareholders need to be on the company's books in order to receive a dividend. It is important to be aware of the ex-dividend date because any trade on the stock needs to have been settled on or before the record date. Accordingly, TPG Telecom investors that purchase the stock on or after the 14th of November will not receive the dividend, which will be paid on the 24th of November.

The company's next dividend payment will be AU$1.61 per share. Last year, in total, the company distributed AU$0.18 to shareholders. Calculating the last year's worth of payments shows that TPG Telecom has a trailing yield of 3.2% on the current share price of AU$5.69. We love seeing companies pay a dividend, but it's also important to be sure that laying the golden eggs isn't going to kill our golden goose! As a result, readers should always check whether TPG Telecom has been able to grow its dividends, or if the dividend might be cut.

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Dividends are typically paid from company earnings. If a company pays more in dividends than it earned in profit, then the dividend could be unsustainable. TPG Telecom reported a loss last year, so it's not great to see that it has continued paying a dividend. With the recent loss, it's important to check if the business generated enough cash to pay its dividend. If cash earnings don't cover the dividend, the company would have to pay dividends out of cash in the bank, or by borrowing money, neither of which is long-term sustainable. Fortunately, it paid out only 37% of its free cash flow in the past year.

Check out our latest analysis for TPG Telecom

Click here to see the company's payout ratio, plus analyst estimates of its future dividends.ASX:TPG Historic Dividend November 11th 2025

Have Earnings And Dividends Been Growing?

Companies with falling earnings are riskier for dividend shareholders. If business enters a downturn and the dividend is cut, the company could see its value fall precipitously. TPG Telecom reported a loss last year, and the general trend suggests its earnings have also been declining in recent years, making us wonder if the dividend is at risk.

The main way most investors will assess a company's dividend prospects is by checking the historical rate of dividend growth. In the past five years, TPG Telecom has increased its dividend at approximately 19% a year on average.

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Get our latest analysis on TPG Telecom's balance sheet health here.

To Sum It Up

From a dividend perspective, should investors buy or avoid TPG Telecom? First, it's not great to see the company paying a dividend despite being loss-making over the last year. On the plus side, the dividend was covered by free cash flow." With the way things are shaping up from a dividend perspective, we'd be inclined to steer clear of TPG Telecom.

So if you're still interested in TPG Telecom despite it's poor dividend qualities, you should be well informed on some of the risks facing this stock. In terms of investment risks, we've identified 1 warning sign with TPG Telecom and understanding them should be part of your investment process.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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