Without a growth plan beyond the NBN, it's hard to imagine Telstra's share price improving soon.

The dividend trap

Sustainability is a primary consideration in estimating dividends yields. A bank with higher levels of capital, a lower pay-out ratio and no sign of bad or doubtful debts is not under pressure to cut dividends. A telco with a looming growth challenge currently paying out 100 per cent of profit as dividends is ripe for a dividend cut.