Australia's phone giant reported its half-year figures recently. A previously flagged $1bn writedown on its investment in Reach, an Asian wholesale telecommunications carrier, dragged the headline profit down 44% on the same period last year to $1.18bn. An interim dividend of 12 cents was declared (ex-date 17 Mar), up one cent on last year. And a three-cent special dividend will be making its way to shareholders as a peace offering. The $2.95bn of operating cash flow merely reinforces our view that Telstra's dominant underlying businesses continue to withstand the flesh wounds inflicted by a poor management team. The shares are down 5% since issue 117/Nov 02 (Buy - $4.38) and, with an attractive dividend yield of well over 5%, they remain a very good BUY.