TELUS Corporation (NYSE:TU) Announces C$0.19 Quarterly Dividend

Key Points

• TELUS declared a quarterly dividend of C$0.1875 per share, payable October 1 to shareholders of record on September 10. The annualized dividend is approximately C$0.75 per share, representing a 7.8% yield.
• The dividend appears financially strained: TELUS has a 151.3% payout ratio, while analysts expect a future payout ratio of 161.3% based on projected earnings, meaning earnings may not fully cover the dividend.
• TELUS reported quarterly EPS of $0.12, below the $0.14 consensus estimate, and its shares fell to $9.55. Institutional investors own 49.4% of the company, with several major holders recently increasing their positions.

TELUS Corporation (NYSE:TU - Get Free Report) TSE: T declared a quarterly dividend on Friday, July 31st. Investors of record on Thursday, September 10th will be given a dividend of 0.1875 per share by the Wireless communications provider on Thursday, October 1st. This represents a c) dividend on an annualized basis and a yield of 7.8%. The ex-dividend date is Thursday, September 10th.

TELUS has increased its dividend payment by an average of 0.1%per year over the last three years and has raised its dividend annually for the last 5 consecutive years. TELUS has a payout ratio of 151.3% indicating that the company cannot currently cover its dividend with earnings alone and is relying on its balance sheet to cover its dividend payments. Equities analysts expect TELUS to earn $0.75 per share next year, which means the company may not be able to cover its $1.21 annual dividend with an expected future payout ratio of 161.3%.

TELUS Stock Performance

TU traded down $1.22 during trading on Friday, hitting $9.55. The stock had a trading volume of 32,781,328 shares, compared to its average volume of 6,129,106. The firm has a market cap of $15.04 billion, a PE ratio of 21.72, a P/E/G ratio of 8.64 and a beta of 0.63. The company has a current ratio of 0.67, a quick ratio of 0.63 and a debt-to-equity ratio of 1.59. TELUS has a 12 month low of $9.22 and a 12 month high of $16.72. The company has a 50 day simple moving average of $11.25 and a 200-day simple moving average of $12.48.

TELUS (NYSE:TU - Get Free Report) TSE: T last issued its quarterly earnings results on Friday, July 31st. The Wireless communications provider reported $0.12 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.14 by ($0.02). TELUS had a net margin of 4.54% and a return on equity of 8.29%. Analysts expect that TELUS will post 0.72 EPS for the current year.

Institutional Trading of TELUS

Several institutional investors have recently modified their holdings of the company. Bank of Nova Scotia increased its holdings in TELUS by 20.4% in the 1st quarter. Bank of Nova Scotia now owns 21,108,090 shares of the Wireless communications provider's stock valued at $271,237,000 after buying an additional 3,571,734 shares during the period. K.J. Harrison & Partners Inc increased its stake in TELUS by 307.9% in the fourth quarter. K.J. Harrison & Partners Inc now owns 222,192 shares of the Wireless communications provider's stock valued at $2,933,000 after acquiring an additional 167,714 shares during the period. The Manufacturers Life Insurance Company raised its position in TELUS by 21.5% in the first quarter. The Manufacturers Life Insurance Company now owns 24,075,122 shares of the Wireless communications provider's stock worth $309,159,000 after purchasing an additional 4,258,557 shares in the last quarter. Letko Brosseau & Associates Inc. lifted its stake in TELUS by 2.2% during the fourth quarter. Letko Brosseau & Associates Inc. now owns 6,775,387 shares of the Wireless communications provider's stock worth $89,416,000 after purchasing an additional 148,325 shares during the period. Finally, Vanguard Group Inc. boosted its holdings in TELUS by 3.2% during the fourth quarter. Vanguard Group Inc. now owns 29,470,046 shares of the Wireless communications provider's stock valued at $388,415,000 after purchasing an additional 916,459 shares in the last quarter. Institutional investors and hedge funds own 49.40% of the company's stock.

TELUS Company Profile

TELUS Corporation NYSE: TU is a Canadian telecommunications and technology company headquartered in Vancouver, British Columbia. It delivers a broad portfolio of consumer and business communications services across Canada, including mobile wireless, fixed-line voice, broadband internet, and television. TELUS also provides a range of enterprise services such as cloud and IT solutions, managed network services, cybersecurity and Internet of Things (IoT) offerings for business customers.

Beyond core connectivity, TELUS has expanded into health and digital services.

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