By Stuart Condie

SYDNEY--Telstra Corp. Ltd. aims to increase its dividend and return excess cash to shareholders as key components of the Australian telecommunications firm's new capital management framework.

Australia's No.1 communications provider by market share said it was confident of maintaining its current annual payout of 16 Australian cents (11.7 U.S. cents) per share, and was focused on growing earnings to maximize dividend imputation. It aims to grow the dividend over time.

Telstra said it was targeting annual underlying earnings-per-share growth in the high teens from the 2023 fiscal year through fiscal 2025, with underlying earnings before interest, tax, depreciation and amortization growing annually in the mid-single digits over the same period.

It said it would invest in growth and return excess cash to shareholders.

Telstra last month launched a A$1.35 billion share buyback after lifting its annual profit and flagging a return to underlying growth in fiscal 2022. It funded the imitative by selling a 49% stake in its mobile towers infrastructure, also paying down debt.

Write to Stuart Condie at stuart.condie@wsj.com

(END) Dow Jones Newswires

September 15, 2021 19:00 ET (23:00 GMT)

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