Yahoo Finance TELUS Corp's Dividend Analysis
Insights into the Upcoming Dividend and Financial Health of TELUS Corp
TELUS Corp (NYSE:TU) recently announced a dividend of $0.39 per share, payable on 2024-07-02, with the ex-dividend date set for 2024-06-10. As investors look forward to this upcoming payment, the spotlight also shines on the company's dividend history, yield, and growth rates. Using the data from GuruFocus, let's look into TELUS Corp's dividend performance and assess its sustainability.
What Does TELUS Corp Do?
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TELUS Corp is one of the Big Three wireless service providers in Canada, boasting over 10 million mobile phone subscribers and capturing about 30% of the market. It serves as the incumbent local exchange carrier in British Columbia and Alberta, offering internet, television, and landline phone services. Additionally, TELUS Corp has expanded into non-telecom sectors such as international business services, health, security, and agriculture, which now constitute over 20% of its sales. The company also holds a 55% economic interest in Telus International.
A Glimpse at TELUS Corp's Dividend History
TELUS Corp has been consistent in paying dividends since 1999, with distributions made quarterly. Since 2002, the company has increased its dividend annually, earning it the status of a dividend achiever. This accolade is reserved for companies that have consistently raised their dividends for at least the past 22 years.
Breaking Down TELUS Corp's Dividend Yield and Growth
Currently, TELUS Corp boasts a trailing dividend yield of 6.67% and a forward dividend yield of 6.85%, indicating an expected increase in dividend payments over the next 12 months. Over the past three years, the annual dividend growth rate was 7.10%, which slightly decreased to 6.70% over a five-year period. Over the last decade, the annual growth rate of dividends per share has been 7.50%. As of today, the 5-year yield on cost for TELUS Corp stock is approximately 9.24%.
The Sustainability Question: Payout Ratio and Profitability
The dividend payout ratio, which stands at 3.09 as of 2024-03-31, offers insights into the portion of earnings TELUS Corp distributes as dividends. A lower ratio suggests the company retains a significant part of its earnings, which supports growth and buffers against downturns. TELUS Corp's profitability rank is 7 out of 10, reflecting strong earnings relative to its peers. The company has also reported consistent positive net income over the past decade.
Growth Metrics: The Future Outlook
TELUS Corp's growth rank is 7 out of 10, indicating a solid growth trajectory. The company's revenue per share and 3-year revenue growth rate of 4.60% annually outperform approximately 52.6% of global competitors. However, its 3-year EPS growth rate and 5-year EBITDA growth rate have underperformed, highlighting areas where the company could improve to sustain its dividend payments.
Conclusion and Next Steps
Considering TELUS Corp's consistent dividend payments, growth in dividend rates, and a robust payout ratio, the company appears well-positioned to maintain its dividend distributions. Investors should continue to monitor these metrics closely, alongside the company's profitability and growth metrics, to ensure long-term sustainability. For those seeking high-dividend yield stocks, consider using the High Dividend Yield Screener available to GuruFocus Premium users.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
This article first appeared on GuruFocus.
