VANCOUVER, May 25, 2026, 11:01 PDT
- TELUS shares last traded at C$17.32 on Monday.
- TSX set a new record high with broader risk appetite picking up.
- TELUS will pay its next dividend of C$0.4184 a share on July 2.
TELUS Corp shares traded up Monday, catching some support from a stronger Canadian market. Investors were looking at the telecom’s almost 10% dividend yield, but also taking in its soft Q1 profit and tough price competition.
The stock last traded at C$17.32 on May 25, higher than its previous close at C$17.26, Stockchase data show. The S&P/TSX Composite Index set a fresh record earlier in the session with buyers stepping in on bets that U.S.-Iran tensions may cool.
Telus is acting more like an income stock than a growth name now. The company announced a quarterly dividend of C$0.4184 per share, set for July 2 for investors on record by June 10.
TELUS is aiming for a long-term payout ratio between 60% and 75% of free cash flow, which is its cash after capex. The company said there’s no guarantee it will keep raising its dividend every six months or stick with the dividend growth plan through 2028.
Telus kept its 2026 goals in place this month, calling for 2% to 4% growth for service revenue and adjusted EBITDA. The company is also sticking with its free cash flow forecast of around C$2.45 billion.
First-quarter numbers show pressure. TELUS reported its mobile phone churn moved up to 1.35%, compared to 1.06% last year, blaming the jump on more customers moving to rivals due to marketing and discounts. Net mobile phone adds slowed to 12,000.
Profit slipped as well. Operating revenue and other income came in at C$5.013 billion, pretty much flat versus C$5.057 billion last year, according to a filing summary. Net income dropped to C$144 million from C$301 million, with restructuring and other costs up.
Rogers and BCE are still the big names investors watch to figure out if Canadian telecom prices are steadying. TELUS faces the same pressure. Morningstar’s Matthew Dolgin said Rogers should be able to hold its share versus BCE and TELUS. Dolgin said both rivals have stopped making big upgrades to their fibre networks.
TSX gains could be hiding trouble for individual companies. If wireless promos drag on, churn doesn’t ease or TELUS misses its free cash flow goal, that big dividend yield can start to look like a red flag instead of a deal.
TELUS is getting some breathing space from the market for now. The stock’s next hurdle is cash generation, not just dividend mechanics, ahead of the June record date.
