Does 2024 go down as an excellent 12 months for BT (LSE: BT.A) shares? The beleaguered FTSE 100 telecoms inventory actually wanted one so right here’s my verdict. Form of.

CEO Allison Kirkby, who took over final February, battled arduous to chop prices, enhance effectivity and inject some much-needed focus into the sprawling organisation.

The BT share price began the 12 months brightly earlier than fading. It nonetheless ended 2024 some 18% larger. That will have turned a £20,000 funding into £23,600. However in truth buyers have performed higher than that.

All through its troubles, BT’s maintained its repute as a dependable supply of dividends. The present trailing yield’s 5.48%. That will have added one other £1,096 to that authentic £20k, giving a complete return of £24,696.

This FTSE 100 inventory’s combating again

BT buyers wanted that. But over 5 years, the shares are nonetheless down a painful 25%.

I toyed with leaping on board the BT share price restoration final 12 months, however finally didn’t. I don’t remorse that call.

Telecoms is a troublesome sector. Simply ask FTSE 100 cell phone big Vodafone Group. It’s additionally extremely aggressive. BT’s spent £15bn rolling out its full-fibre Openreach community, solely to see smaller alt-providers steal its prospects away.

The group nonetheless hasn’t solved long-standing points corresponding to its enormous pension liabilities and large £20bn debt pile that dwarfs its market-cap of £14.3bn.

There was a sting on the tail finish of the 12 months, when BT downgraded full-year income steerage, blaming non-UK operations and a “competitive retail environment”. Interim revenues fell 3% to £10.1bn whereas pre-tax income slumped 10% to £967m.

Fortunately, the dividend appears stable, with the interim payout hiked virtually 4%, from 2.31p to 2.40p. Normalised free money flows climbed 57% to £700m as a consequence of larger earnings, working capital timing and a tax refund.

This blue-chip generates loads of money

Kirkby says the group’s on monitor to satisfy long-term price financial savings and money movement targets, so we will assume the dividend’s protected. The forecast yield’s 5.59% for 2025, rising to five.71% in 2026. That provides a stable base return, however what concerning the share price?

The 13 analysts providing one-year share price forecasts have produced a median goal of simply over 200p. If appropriate, that’s a rise of a whopping 37% achieve from immediately. Solely time will inform. Given BT’s low cost price to earnings ratio of simply 7.96 occasions, there’s actually scope for progress.

I’m a bit shocked by this outburst of dealer optimism. I’m anticipating 2025 to be bumpy for the financial system, as inflation stays excessive and shoppers proceed to really feel the squeeze. The current revenue dip doesn’t strike me as an excellent omen both.

I’m sticking to my view that BT’s greatest averted for me. That is partly as a consequence of portfolio steadiness. I maintain plenty of high-yielding FTSE 100 worth shares which can be due a re-rating when the blue-chip index swings again into favour. I ought to most likely diversify, simply in case it doesn’t.