TORONTO, Jan 2, 2026, 10:57 ET
- TELUS paid a quarterly dividend of C$0.4184 per share on Jan. 2 as it pauses dividend growth to focus on debt reduction. 1
- The telecom has laid out free cash flow and leverage targets for 2026-2028 and is stepping down its discounted dividend reinvestment plan. 2
- A recent Motley Fool Canada column highlighted Bank of Nova Scotia as a lower-risk income alternative to high-yield telecom stocks. 3
TELUS Corp’s U.S.-listed shares were little changed on Friday as the Canadian telecom paid its latest quarterly dividend, keeping its near-10% dividend yield in focus for income investors at the start of 2026. 1
The payout lands as investors reassess high-yield stocks after a stretch in which rate-sensitive names and heavily indebted companies have struggled to keep their appeal.
In TELUS’ case, the yield has swelled largely because the share price has fallen, sharpening the debate over whether the stock is a value opportunity or a warning sign.
TELUS said its board declared a quarterly dividend of C$0.4184 per share in November, payable on Jan. 2 to shareholders of record as of Dec. 11. The company also reiterated that dividend decisions are made quarterly by its board. 1
Dividend yield is the annual cash payout relative to a company’s share price. A rising yield can reflect a higher dividend, a falling share price, or both.
In a Dec. 3 update, TELUS said it would pause dividend growth and begin stepping down the discount on its dividend reinvestment plan, or DRIP — a program that lets shareholders take new shares instead of cash, often at a discount that can dilute existing holders. 2
“Our confidence in delivering free cash flow growth at a minimum 10 per cent compounded annual growth rate through 2028 reflects our strong financial momentum,” CEO Darren Entwistle said in that update. 2
TELUS also laid out cash and leverage targets, including a preliminary 2026 free cash flow goal of about $2.4 billion and capital spending of about $2.3 billion, while aiming to reduce net debt to EBITDA — a leverage yardstick that compares debt to earnings before certain costs — to about three times by the end of 2027. 2
In a column published late Dec. 31, Motley Fool Canada writer Joey Frenette said TELUS’ dividend yield was hovering around 9.5% and that the stock had fallen a little more than 25% over the past two years, arguing that higher yields often come with higher risk. 3
Frenette pointed to Canadian banks as a steadier income play, naming Bank of Nova Scotia and citing a 4.4% yield and a 17.9 times trailing price-to-earnings ratio — a common valuation metric that compares a share price to earnings per share. 3
Bank of Nova Scotia’s U.S.-listed shares were up 0.5% at $74.05 in late morning trade, while TELUS was up about 0.1% at $13.18.
