China Telecom dividend: history and cash cover
MyStockButler's October 2026 analysis: China Telecom paid RMB0.16 per share in the latest interim period, versus RMB0.18 a year earlier. Cash flow leaves a cushion, but coverage depends on cash after investment and leases.
How much does China Telecom pay per share?
The dividend policy now promises progressively larger distributions. Within three years from 2024, cash distributions are intended to increase gradually to above 75% of annual shareholder profit. The 2026 interim distribution was 75% of first-half shareholder profit, compared with 72% a year earlier, but the per-share payment fell from RMB0.18 to RMB0.16 because earnings fell.
| 2025 | 2024 | 2023 | 2022 | 2021 | |
|---|---|---|---|---|---|
| EPS, diluted | 0.36 | 0.36 | 0.33 | 0.30 | 0.31 |
| − Dividends paid, per share | 0.27 | 0.26 | 0.22 | 0.29 | 0.10 |
| − Share buybacks, per share | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| = FCF not paid out, per share | 0.11 | 0.18 | 0.14 | 0.05 | 0.36 |
How much would China Telecom's dividend pay you?
HK$10,000 invested in China Telecom at its 7.4% dividend yield (our report of October 23, 2026) pays HK$740.00 in the first year, before tax. If its dividend per share keeps changing 28.2% a year, as it did from 2021 to 2025, and the dividends are reinvested, year 10 pays HK$46,158.98, with HK$102,909.71 received in all.
Before tax. Past dividend growth is not a promise. Information only, not investment advice.
Is China Telecom’s dividend covered by cash?
Free cash flow means operating cash after capital spending, with the exact answer depending on the definition. Subtracting 2025 capital spending and lease payments left RMB35.2 billion, below RMB39.7 billion in 2024. Treating employee awards as an economic cost leaves analytical real FCF of RMB34.9 billion.
Free cash flow supplies the next test. In 2025, operating cash flow was RMB125.1 billion. Capital expenditure was RMB80.4 billion, leaving RMB44.7 billion before debt repayment, leases, acquisitions and future investment. That cushion supports the dividend only if the calculation captures the cash genuinely available after maintaining the business.
| 2025 | 2024 | 2023 | 2022 | 2021 | |
|---|---|---|---|---|---|
| Free cash flow | 35,162 | 39,693 | 32,995 | 30,830 | 38,650 |
| − Dividends paid | 25,064 | 23,527 | 20,059 | 26,537 | 8,439 |
| − Share buybacks | 0 | 0 | 0 | 0 | 0 |
| = Free cash flow not paid out | 10,029 | 16,076 | 12,857 | 4,203 | 30,099 |
| Paid out, % of free cash flow | 71.3% | 59.3% | 60.8% | 86.1% | 21.8% |
| Paid out, % of real free cash flow | 71.9% | 62.3% | 65.0% | 89.0% | 22.1% |
What this means. The large investment purchases do not mean the company lost that much cash, because it also sold or received money back from many investments.
What could change China Telecom’s dividend?
The share can reach HK$9.63 by October 2029 if earnings recover and cloud and AI investment produces adequate cash returns. Management plans 2026 capital expenditure of RMB73.0 billion, down 9.2%. Computing-infrastructure capex rises 26.0%, while network-infrastructure capex falls 26.0%. Cash-distribution guidance is 75% of profit attributable to shareholders, alongside longer-term growth in intelligence revenue and profit.
The 2026 full-year results should show whether capex stayed within plan and whether reported profit supports management’s adjusted-growth claims. The 2027 budget and 2027 interim results should test external paying customers, renewals, collections and cash returns after delivery costs. Falling ARPU, slow collections or investment ahead of paid demand push the case toward bear; stable customer economics and repeatable cloud and AI cash returns support recovery.
What is China Telecom’s dividend yield against its share price?
| Today (Oct 23, 2026) | |
|---|---|
| Share price | 4.315 |
| Free cash flow yield (calculated) | 10.5% |
| Real free cash flow yield (calculated) | 10.4% |
| Dividend yield (calculated) | 7.4% |