■ Cut · August 25, 2026
Telus Dividend Cut Leaves 5.4% Yield; Stock Down 50% in 5 Years
Telus reduced its quarterly dividend to 18.75 cents, but the yield remains high at 5.4%. The stock has lost over half its value in five years.
Dividend Reduction and Current Yield
Telus (TU) reduced its quarterly dividend last month from 41.84 cents to 18.75 cents per share, a cut of more than 55%. Despite the reduction, the stock's current yield stands at approximately 5.4%, which is above the average for the broader market. This yield is derived from the new annualized payout of 75 cents per share against the current share price.
Stock Performance and Market Reaction
Over the past five years, Telus shares have declined by more than half, reflecting sustained pressure on the company's valuation. Following the dividend announcement, the stock experienced a further decline, though the drop was less severe than some had anticipated, likely because the market had already priced in the possibility of a cut. The stock has not shown signs of a sustained recovery, and it continues to trade near lows.
Business Fundamentals and Long-Term Outlook
Telus remains a profitable telecommunications provider and a significant player in the Canadian market. The company's core operations generate steady cash flow, which supports its ability to maintain the reduced dividend. While the stock has been in a downtrend, the underlying business has not deteriorated to the same extent. Historically, Telus has been a reliable dividend payer, and its dividend history shows a long record of payments, though the recent cut marks a departure from its previous growth trajectory.
For investors considering the stock, the current yield offers a substantial income stream relative to the investment. However, the stock's prolonged decline suggests that value erosion has been a persistent issue. The company's ability to stabilize its share price will depend on its operational performance and broader market conditions.
What it means for income investors
The reduced dividend still provides a yield that is attractive compared to many alternatives, but the stock's five-year decline highlights the risks associated with capital loss. Income-focused investors may find the yield compelling, but the sustainability of the payout and the potential for further share price weakness are important considerations.
Reporting based on: TradingView. Figures verified against market data where available.