Out of all the available large ASX blue-chips, I think Telstra Group Ltd (ASX: TLS) shares could be one of the best buys.
Telstra is best known for its national mobile network offering, though it also has other operations including being a provider of NBN services, 5G wireless broadband, Asia Pacific telecommunications and telco infrastructure.
Let me explain why I think the business has positives.
Growing revenue
One of the most appealing elements about Telstra is how it’s regularly increasing its mobile revenue, which is an important driver of the company’s overall success.
During the 2026 financial year, the company reported total mobile income of $11.4 billion, representing an increase of 3% year on year.
Within that income, mobile service revenue rose 4.8% thanks to handheld price changes and wholesale.
It noted there was sustained average revenue per user (ARPU) growth across all categories, brands and segments. That included postpaid handheld growth of 3.8%, prepaid handheld growth of 7.2% and wholesale growth of 8.8%. Overall ARPU improved by 3.7% year on year to $45.33.
On top of that, mobile handheld users increased by 1.9% year on year, which was a 274,000 increase in actual subscriber numbers. That included 39,000 Telstra retail customers and 235,000 extra wholesale subscribers.
I expect the business will be able to continue delivering rising mobile revenue as more devices require an internet connection in the coming years.
Rising profit margins
Another major positive to the Telstra business is how its profit margins continue improving.
While mobile income grew during FY26, total income fell 0.9% because of divestments, product rationalisation and foreign exchange.
Despite that, the business was able to report EBIT (EBIT explained) growth of 1.7%, net profit growth of 2.7% and earnings per share (EPS) growth of 5.3%.
As you can see, the profit metrics grew, despite the fall in income, suggesting improving profit margins.
The company’s cash earnings performed even better, which I think is a great sign of the strength of the underlying business.
Cash EBIT rose 8%, cash earnings climbed 11.6% and cash EPS rose 13.8%. If its earnings can continue to grow at this sort of pace (even just high single-digits), it could definitely justify a higher valuation of Telstra’s shares in the coming years.
Pleasing dividend
The final factor I want to talk about is the good dividend yield.
It’s useful to receive some of the returns each year as cash paid into our bank account so that we can do whatever we want to do with the money. It can be re-invested or spent.
There’s no guarantee that Telstra will increase its dividend every year forever, but it’s starting to build a bit of a growth streak, providing reliability for investors.
Telstra decided to hike its annual dividend per share by 10.5% to $0.21. That translates into a dividend yield of 4.4%, excluding franking credits.
Overall, there’s a lot to like about Telstra shares and I think it can provide solid returns over the rest of this decade.
