Rising income plus spinoff potential

Article Excerpt

Telus has largely completed its multi-year plan to upgrade its wireless networks to handle 5G signals; those signals are much faster than current 4G (LTE) systems. The company has also upgraded most of its copper-line networks to fibre-optic cable. Together, these improvements will help Telus compete with other telecoms, particularly now that Rogers’ merger with Calgary-based Shaw Communications expands its presence in Western Canada, Telus’s home market. We feel the company will continue to add customers and increase its cash flow. That will let it raise its dividend by 7% to 10% annually through the end of 2025. Telus could also unlock more of its value by selling shares in its non-telecom businesses. TELUS CORP. $28 is your #1 Income Buy for 2023. The company (Toronto symbol T; Conservative Growth and Income Portfolios, Utilities sector; Shares outstanding: 1.4 billion; Market cap: $39.2 billion; Price-to-sales ratio: 2.2; Dividend yield: 5.0%; TSINetwork Rating: Above Average; www.telus.com) is Canada’s second-largest wireless carrier (after BCE, see page 47). As of…