Advertisement
U.S. markets open in 4 hours 47 minutes
  • S&P Futures

    5,304.75
    -3.50 (-0.07%)
     
  • Dow Futures

    40,127.00
    -17.00 (-0.04%)
     
  • Nasdaq Futures

    18,489.00
    -14.75 (-0.08%)
     
  • Russell 2000 Futures

    2,133.50
    -4.90 (-0.23%)
     
  • Crude Oil

    81.82
    +0.47 (+0.58%)
     
  • Gold

    2,214.60
    +1.90 (+0.09%)
     
  • Silver

    24.55
    -0.21 (-0.84%)
     
  • EUR/USD

    1.0794
    -0.0035 (-0.32%)
     
  • 10-Yr Bond

    4.1960
    0.0000 (0.00%)
     
  • Vix

    12.97
    +0.19 (+1.49%)
     
  • GBP/USD

    1.2608
    -0.0030 (-0.23%)
     
  • USD/JPY

    151.3600
    +0.1140 (+0.08%)
     
  • Bitcoin USD

    70,649.05
    +860.91 (+1.23%)
     
  • CMC Crypto 200

    885.54
    0.00 (0.00%)
     
  • FTSE 100

    7,952.58
    +20.60 (+0.26%)
     
  • Nikkei 225

    40,168.07
    -594.66 (-1.46%)
     

Dividend Hunters Should Consider TELUS Corporation (TSE:T), With A 4.32% Yield

Over the past 10 years TELUS Corporation (TSX:T) has grown its dividend payouts from CA$0.9 to CA$2.02. With a market cap of CA$27.79B, TELUS pays out 80.01% of its earnings, leading to a 4.32% yield. Let me elaborate on you why the stock stands out for income investors like myself. Check out our latest analysis for TELUS

What Is A Dividend Rock Star?

It is a stock that pays a stable and consistent dividend, having done so reliably for the past decade with the expectation of this continuing into the future. More specifically: Its annual yield is among the top 25% of dividend payers It has paid dividend every year without dramatically reducing payout in the past Its dividend per share amount has increased over the past It can afford to pay the current rate of dividends from its earnings It has the ability to keep paying its dividends going forward

High Yield And Dependable

TELUS’s yield sits at 4.32%, which is on the low-side for Telecom stocks. But the real reason TELUS stands out is because it has a proven track record of continuously paying out this level of dividends, from earnings, to shareholders and can be expected to continue paying in the future. This is a highly desirable trait for a stock holding if you’re investor who wants a robust cash inflow from your portfolio over a long period of time.

TSX:T Historical Dividend Yield Mar 12th 18
TSX:T Historical Dividend Yield Mar 12th 18

If there is one thing that you want to be reliable in your life, it’s dividend stocks and their constant income stream. In the case of T it has increased its DPS from CA$0.9 to CA$2.02 in the past 10 years. During this period it has not missed a payment, as one would expect for a company increasing its dividend. These are all positive signs of a great, reliable dividend stock. The current trailing twelve-month payout ratio for the stock is 80.01%, which means that the dividend is covered by earnings. Going forward, analysts expect T’s payout to remain around the same level at 72.62% of its earnings, which leads to a dividend yield of 4.80%. In addition to this, EPS should increase to CA$2.63.

Next Steps:

TELUS’s strong dividend attributes make it, without a doubt, a stock dividend investors should be considering for their portfolios. However, given this is purely a dividend analysis, I urge potential investors to try and get a good understanding of the underlying business and its fundamentals before deciding on an investment. I’ve put together three essential aspects you should further examine:

  1. Future Outlook: What are well-informed industry analysts predicting for T’s future growth? Take a look at our free research report of analyst consensus for T’s outlook.

  2. Valuation: What is T worth today? Even if the stock is a cash cow, it’s not worth an infinite price. The intrinsic value infographic in our free research report helps visualize whether T is currently mispriced by the market.

  3. Other Dividend Rockstars: Are there strong dividend payers with better fundamentals out there? Check out our free list of these great stocks here.


To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.

The author is an independent contributor and at the time of publication had no position in the stocks mentioned.

Advertisement