Telus stands out with a 7.8% yield

Telus Corp. offers a high 7.8% yield as it continues to diversify its revenue streams.

Telus has successfully transformed from a traditional telecom into a diversified technology company with significant exposure to high-growth sectors. Its Health division represents a particularly compelling growth driver and offers substantial long-term growth potential as digital health adoption accelerates globally. Combined with the company’s dominant position in Canada’s telecommunications infrastructure through its PureFibre network expansion, the company has built multiple defensive moats that provide both stability and growth optionality.

The stocks yields a very high 7.8%--and beyond this year, Telus plans to increase the annual rate by between 3% and 8% from 2026 through the end of 2028.

TELUS CORP. (Toronto symbol T) is Canada’s largest wireless carrier with 14.18 million subscribers (including non-cellphone devices such as tablets). It also sells landline phone, Internet and TV services in B.C., Alberta and eastern Quebec.

In the quarter ended June 30, 2025, Telus added 55,000 new wireless phone subscribers as well as 112,000 users of other devices (both numbers are net of cancellations).

However, due to greater competition, the average monthly cellphone revenue per user declined 3.3% in the quarter to $56.58. Even so, its mobile phone churn rate, which shows how many customers cancelled their service, improved to 1.06% from 1.07% a year earlier.

The company’s revenue in the quarter still rose 2.2%, to $5.08 billion from $4.97 billion a year earlier. That topped the consensus forecast of $5.01 billion.
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If you exclude a $500-million writedown of Telus International and costs related to a restructuring plan (including job cuts at Telus International), overall earnings before unusual items declined 6.6%, to $342 million from $366 million. Due to more shares outstanding, per-share earnings fell 12.0%, to $0.22 from $0.25. That missed the consensus estimate of $0.23. The lower earnings are due to higher employee and other operating costs.

Telus recently opened a new datacentre in Rimouski, Quebec, to run artificial intelligence (AI) software using advanced chips from Nvidia Corp. (Nasdaq symbol NVDA). Note—Nvidia is a recommendation of Wall Street Stock Forecaster, our newsletter that covers U.S. stocks.

The company is also building a second AI datacentre in Kamloops, B.C.

Telus has not yet said how much these new facilities will cost. However, they should help it attract more clients, particularly as Canadian businesses become wary of storing their data on foreign platforms. The company has already secured deals with Canadian healthcare software provider League, enterprise software firm OpenText and business consulting firm Accenture.

Telus’s steady dividend hikes bolster appeal

Starting in 2011, Telus began rewarding its shareholders with twice yearly dividend increases. Under the current version of the plan, the company committed to increasing the annual rate by between 7% and 10% from 2023 through the end of 2025.

The latest increase came with the July 2025 quarterly payment. Investors now receive $0.4163 a share, up 3.5% from $0.4023. The new annual rate of $1.665 a share yields a high 7.8%.

Beyond this year, Telus plans to increase the annual rate by between 3% and 8% from 2026 through the end of 2028.

Including this latest increase, the company’s dividend has grown at an average annual rate of 7.4% over the past five years. Telus holds a Highest TSI Dividend Sustainability Rating.

Recommendation in The Successful Investor: Telus Corp. is a buy.

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Jim Bates

Jim is an associate editor at TSI Network. He is the lead reporter and analyst for The Successful Investor and Wall Street Stock Forecaster and a member of the Investment Planning Committee. Jim has held the Chartered Financial Analyst designation since 1992 and spent more than a decade at the Financial Post DataGroup before joining TSI Network. He has a Bachelor of Commerce degree from the University of Toronto.

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