Dividend increase: Telus

Article Excerpt

TELUS CORP. $47 (Toronto symbol T; Income-Growth Dividend Payer Portfolio, Utilities sector; Shares outstanding: 595.0 million; Market cap: $28.0 billion; Dividend yield: 4.5%; Dividend Sustainability Rating: Highest; www.telus.com) has 8.9 million subscribers and is Canada’s third-largest wireless carrier, after Rogers Communications (No. 1) and BCE (No. 2). In addition, its wireline business serves traditional phone, Internet and TV customers in B.C., Alberta and eastern Quebec. Starting in July 2018, the company will increase its quarterly dividend by 4.0%. Investors will then receive $0.525 a share, up from $0.505. The new annual rate of $2.10 yields a high 4.5%. Telus aims to pay out between 65% and 75% of its earnings before unusual items as dividends. In the 12 months ended March 31, 2018, dividends accounted for 76% of those earnings. That’s slightly above the company’s target range, but Telus remains committed to raising the annual rate between 7% and 10% for 2019. Telus is a buy. For more information on Telus, click here. here…