Dividend hike for Telus

Article Excerpt

TELUS CORP. $45.12 (Toronto symbol T.A; Shares outstanding: 335.6 million; Market cap: $15.1 billion; TSINetwork Rating: Above Average; Dividend yield: 4.7%; www.telus.com) recently raised its quarterly dividend for the second time this year. The new annual rate of $2.10 a share, up 5.0% from $2.00, yields 4.7%. Even with the increase, Telus’s dividend payments account for just 22% of its forecast 2010 cash flow of $3 billion, or $9.35 a share, so further hikes seem likely. That strong cash flow will also let Telus keep investing in its networks and other businesses. As well, its long-term debt of $5.4 billion is a moderate 36% of its market cap Telus trades at 13.8 times the $3.27 a share it will probably earn this year. Telus is still a buy. buy…

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