TELUS resets dividend to $0.1875 a share after 42% stock slide
AI Market Summary
TELUS announced a sharp dividend cut (quarterly C$0.4184 to C$0.1875) and shifted to a 45%–60% free-cash-flow payout target, aiming to redirect roughly C$2.7B of savings through 2028 toward debt reduction. The reset improves dividend coverage (Q2 FCF up 2% to C$545M) but underscores pressure from competition, slower subscriber growth, and elevated leverage, supporting mixed near-term sentiment.
Impact level
● Low
Affected assets
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AI Insight · NCCOGOLD2USD/USDTAI Insight
● Neutral
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TELUS said on July 31 it will cut its quarterly dividend to $0.1875 per share from $0.4184, lowering the annual payout to $0.75. The company expects the change to save about $2.7 billion through 2028 for debt reduction and will replace its prior dividend-growth approach with a payout target of 45% to 60% of trailing free cash flow. TELUS shares have recently traded around $13.25, about 42% below the $23.18 52-week high, implying a 5.6% dividend yield on the reset payout. Second-quarter free cash flow rose 2% year over year to $545 million.
