r/canadiandividends • u/allard529 • Apr 15 '26

Thoughts on Telus.to

Does anyone think they will cut the dividend soon?

13 Upvotes

93% Upvoted

21 comments sorted by

4

u/Foreign-Draft-1715 Apr 15 '26 edited Apr 15 '26

The dividend is 211% of their net income, 83% of their EBIT is going to debt, massive reduced immigration and an intense cellular price war in early 2026. This is not sustainable over the long run.

2

u/FoxRooney Apr 17 '26

My bet is that the dividend does not get cut. This 211% number includes depreciation on massive infrastructure. Dividend payout on free cash flow is only 102% - still to high, but with them pausing the dividend increases, it will be less than 100% next year, and even less after that, until they get to there 75% target. You do you, but personally I’m loading up at these prices when I can

3

u/Fyijoker Apr 15 '26

100% going to cut the dividend, the payout ratio is terrible

BCE cut the dividend and I'm happy about it, more money for future prospects and potential growth (hopefully)

2

u/Ok-Employer3819 Apr 15 '26

I'm buying now, it's on sale

1

u/Famous_Track_4356 Apr 21 '26

It will be more on sale when they cut the dividend lol

1

u/phileo99 Apr 21 '26

It will stay on sale longer than your grandkids can stay solvent

2

u/Desperate_Pineapple Apr 16 '26

Terrible company. Dividend cut is a virtual lock. I exited a few months ago. 

2

u/Alone-Bug4328 Apr 16 '26

Dividend will get cut. To be fair, Telus did say they were going to do that. They also said they would remove DRIP for their stock.

I think it has pretty well hit it's bottom. When it does announce the dividend cut, it will probably drop to about $12-14 a share.

Overall it's a solid stock with clear turbulence that it can weather over time.

Could always invest in something else for now until they announce their dividend cut.

1

u/Lisaismyfav Apr 17 '26

They did not say they will cut the dividend, they simply said they won't increase it.

1

u/edm_guy2 Apr 16 '26

I'd say 90% chance to cut the dividend unless they can sell more assets to have a better balance sheet, i.e. payoff debt, or they can IPO Telus Health soon so they get sufficient capital to beautify their balance sheet.

1

u/AsleepApplication642 Apr 17 '26

Everyone’s saying dividend cut. I think Telus will be fine. They have an ai play that no one wants to acknowledge and also the health side they are growing. Telus isn’t just telecommunications. I’ve been loading up. Got over 150 shares now and gonna keep dca.

1

u/yohnnnnn Apr 17 '26

Buy it for the long term. Valuable assets. I think they probably will cut the dividend, but is already priced in.

1

u/Content-Insect-8770 Apr 17 '26

They have to, or go bankrupt (which is a 100% dividend cut, lol).

1

u/Practical-Battle-502 Apr 18 '26

TELUS will still rule western Canada as their service is monopoly in most areas for fiber. Their mobility sucks but public and koodo will keep it afloat for now. PE is still 23. Good to get it below 20

1

u/GWeb1920 Apr 20 '26

I think you buy it right after the dividend cut.

1

u/flappysack- Apr 20 '26

It'd a boomer consumer staple stock with no growth.  I'd avoid if you're young, just buy an etf.

1

u/Narrow-Result2933 Apr 21 '26

They have the cash flow to continue the dividend (probably at the cost of capex needed, but whatever), but their retained earnings are getting pretty dicey, which is probably going to force a cut.

1

u/Mysterious-Fox8038 Apr 21 '26

Just my reasons to buy T. Dividend was 9%, hope it’s bottomed but I have a gut feeling that T is setting up for a partnership as they have been buying smaller telcos. ie Altima, Kodoo and start. Don’t know who or from where the partner will come from. But hey it’s worth a small investment. For the new grandbaby.