The BT Group (LSE: BT.) share price has climbed 17% this year, recouping all the losses it suffered in late 2025. Now trading around 215p per share, it’s more than doubled in price since April 2024.
So where is it heading from here? Could it slump again as it did in August last year — or has it rediscovered its 2024 momentum for good?
A volatile income play
While BT still offers some income appeal, it’s no longer the sleepy, low-drama dividend stock that it once was. Lately, the shares have been much more volatile than a classic passive income holding should be. Subsequently, the income appeal becomes a little less comfortable for long-term investors.
The recent ride has been a bit of a roller coaster, unsettling income investors seeking steady returns. Nobody is looking for a stock that makes sharp, unpredictable moves on sentiment and headlines. Dividends aside, a volatile share price leaves investors constantly worried about capital losses.
So is BT still an income pick?
A difficult period
Before Covid, BT had a decent reputation as a dividend payer. It delivered eight years of uninterrupted dividend growth between 2009 and 2017, and over the longer run the yield has often sat in a 4% to 6% range.
That kind of yield is enough to catch the eye of income seekers, especially when cash savings rates are lower. But it also paused dividends during the pandemic, so its track record is no longer perfect.
On top of this, it’s been dealing with the challenge of a national fibre rollout — a costly operation that’s ramped up debt.
Fair to say, it hasn’t exactly been an easy period.
Management shakeup
These combined challenges have partly contributed to a leadership reset, with CEO Bas Burger stepping down after 18 years.
Allison Kirkby has taken charge, with Katie Milligan stepping in as CEO of broadband subsidiary Openreach.
Naturally, all this in the middle of a critical rollout isn’t ideal. So Ofcom has stepped in to set the rules for the final phase of the fibre build, including price caps and further regulation.
But is it enough to subdue the volitility?
Where BT stands now
The telecom giant’s latest half-year figures were decent rather than dazzling. Adjusted EBITDA was £4.1bn, flat year on year, while reported profit before tax fell 11% to £862m.
Net debt rose to £20.9bn from £19.8bn, mainly because of pension contributions and the dividend payment. But the company still expects full-year normalised free cash flow of around £1.5bn, allowing some breathing room — but not a lot.
Heavy debt, continuing capital spending and regulatory pressure all add risk in an already competitive sector. If the fibre investment doesn’t start converting into cash soon, it could be in trouble.
Valuation-wise, the shares look somewhat reasonable but not exactly cheap, so it’s already earning some credit for the turnaround.
My verdict
Established companies like BT often retain appeal purely due to their size and longevity, which is reason enough to consider the shares. But with the fibre rollout ongoing and new management still integrating, investors should brace for further volatility.
In the long run, this probably won’t be a big issue. Once things settle, I imagine steady dividend growth will be reinstated. But I’ve also spotted a few more stable income picks on the FTSE 100 lately…
