Topic: How To Invest

Dividend Advisor Hotline – Friday, April 9, 2021

Article Excerpt

TELUS CORP., $25.82, Toronto symbol T, is a buy. Telus is Canada’s third-largest wireless carrier after Rogers Communications (No. 1) and Bell Mobility (No. 2). It also sells landline phone, Internet, TV and home security services in B.C., Alberta and eastern Quebec. With the January 2021 payment, Telus raised your quarterly dividend by 6.8%. Investors now receive $0.3112 a share instead of $0.29125. The new annual rate of $1.245 yields a high 4.8%. The company recently sold 51.3 million new common shares at $25.35 a share for a total of $1.3 billion. If underwriters exercise their option to buy an additional 7.7 million shares, the gross proceeds will rise to $1.5 billion. Those 59.0 million extra shares would increase the total outstanding by roughly 5%. Telus plans to use the funds to accelerate upgrades to its fibre-optic systems and ultrafast 5G wireless networks. In 2021, it will spend $500 million to $750 million of the proceeds on these projects. That’s on top of its previously…