TORONTO, August 1, 2026, 12:10 ET — Closing bell rings as TELUS TSE:T stock drops, wiping out around C$2.7 billion in market cap, an amount equal to projected dividend savings.
- TELUS dropped 11.27% on Friday, closing at C$13.38. Trading volume was 50.34 million shares, nearly six times the usual amount.
- The annual dividend of C$0.75 equates to a yield of approximately 5.6%. TELUS projects cumulative savings of C$2.7 billion through 2028.
- Guidance for free cash flow dropped 26.5% to C$1.8 billion, while planned capital expenditures rose to C$2.6 billion.
TELUS Corporation saw its market value fall by roughly C$2.67 billion on Friday, a drop that closely aligns with the C$2.7 billion in dividend savings it aims to achieve by 2028. The initial figure reflects an investor estimate.
The alignment does not serve as an accounting offset. Market value incorporates expectations of future profits, capital requirements and associated risks. Friday’s development thus indicates skepticism over the broader reset, beyond just the dividend reduction.
The stock climbed 4.7% between July 24 and Thursday. On Friday, that advance was wiped out, pushing TELUS down 7.1% for the week.
The move was backed by volume. Shifts in price history, turnover, and the number of shares highlight the extent of the repricing.
| Market measure | Friday result | Comparison |
|---|---|---|
| Closing price | C$13.38 | C$15.08 on Thursday |
| One-day move | -11.27% | Weekly move: -7.08% |
| Volume | 50.34 million | 5.9 times the recent average |
| Intraday low | C$12.93 | Marks a new 52-week low |
| Approximate equity value lost | C$2.67 billion | Equals 99% of planned dividend savings |
The board reduced the quarterly dividend to C$0.1875 from C$0.4184. Additionally, it decreased the payout target and will eliminate the dividend-reinvestment-plan discount starting in October.
| Dividend measure | Previous framework | Reset framework |
|---|---|---|
| Quarterly dividend | C$0.4184 | C$0.1875 |
| Annualized dividend | C$1.6736 | C$0.75 |
| Cash yield at relevant close | 11.1% based on July 30 close | 5.6% based on July 31 close |
| Free-cash-flow payout target | 60%-75% projected | 45%-60% for trailing 12 months |
Following the reset, TELUS’s forward yield aligns more closely with BCE Inc. (TSE:BCE), no longer standing out as an outlier. The yield is still higher than that of Rogers Communications Inc. (TSE:RCI.B).
| Company | Friday close | Annualized latest dividend | Forward yield |
|---|---|---|---|
| TELUS | C$13.38 | C$0.75 | 5.61% |
| BCE | C$30.41 | C$1.75 | 5.75% |
| Rogers | C$47.46 | C$2.00 | 4.21% |
The primary worry centred on the operational reset. TELUS lowered its forecasts for revenue and adjusted EBITDA growth. Adjusted EBITDA remains the company’s key operating profit indicator. The company’s capital expenditures also rose.
| 2026 outlook | Previous | Updated |
|---|---|---|
| Service revenue change | 2% to 4% | Stable to -2% |
| Adjusted EBITDA change | 2% to 4% | -2% to -4% |
| Capital investment | Near C$2.3 billion | Roughly C$2.6 billion |
| Free cash flow | Approximately C$2.45 billion | Roughly C$1.8 billion |
Free cash flow guidance declined by C$650 million, equal to 26.5%, reducing the immediate advantage from retained dividends.
The quarter’s profit and revenue came in below expectations. Adjusted earnings stood at C$0.16 per share, missing consensus by four cents. Operating revenue declined 3% to C$4.93 billion.
Cash generation outpaced income statement figures. Operating cash flow climbed 15% to C$1.34 billion, while free cash flow edged up 2% to C$545 million.
Core telecom was steady, but not robust. Revenue from mobile networks climbed 1%. The average revenue per mobile customer slipped 0.4%, and churn climbed to 1.08%.
New mobile phone subscriptions declined to 17,000 from 55,000 in the prior year. Internet subscriber growth eased to 20,000 compared to 27,000 previously. Competitive offers and slower population growth continue to weigh on results.
TELUS Digital was the primary contributor to the setback. The company recorded a C$2.1 billion impairment related to that division. According to management, roughly two-thirds of the lowered revenue guidance stemmed from TELUS Digital.
Maher Yaghi, an analyst with Scotiabank (TSE:BNS), described the quarter as weak. “The action is the right one, but the size of the guidance reduction shows it was not discretionary,” he wrote. MarketScreener
CEO Victor Dodig stated that “the macro environment has shifted.” TELUS has set a new net debt target of 3.0 times adjusted EBITDA or lower by the end of 2028, extending the timeline by one year. PR Newswire
The strategy relies on reducing expenses, cutting capital expenditure, and selling assets. TELUS is currently evaluating its health and real-estate assets considered non-core.
Toronto markets will reopen for trading on Tuesday following the Civic Holiday on Monday. Shares of TELUS listed on the NYSE NYSE:TU remain active on Monday. BCE is set to announce its second-quarter earnings on Thursday, offering the sector’s next pricing benchmark.
Risks continue to be focused on wireless pricing, subscriber demand, and TELUS Digital performance. Increased spending and postponed asset sales may further delay deleveraging.
