TELUS Corporation (NYSE:TU) Declares Quarterly Dividend of $0.30

Key Points

• TELUS Corporation has declared a quarterly dividend of $0.3019 per share, which represents a 1.0% increase from its previous dividend and a yield of 7.7% based on its stock price.
• The company has a high payout ratio of 151.3%, indicating that it is currently relying on its balance sheet to pay dividends, as it cannot cover them with earnings alone.
• In its latest earnings report, TELUS reported $0.16 earnings per share, missing expectations by $0.01, while revenue increased by 2.2% year-over-year to $3.74 billion.

TELUS Corporation (NYSE:TU - Get Free Report) TSE: T declared a quarterly dividend on Monday, August 4th, Wall Street Journal reports. Shareholders of record on Wednesday, September 10th will be given a dividend of 0.3019 per share by the Wireless communications provider on Wednesday, October 1st. This represents a c) annualized dividend and a yield of 7.6%. The ex-dividend date is Wednesday, September 10th. This is a 1.0% increase from TELUS's previous quarterly dividend of $0.30.

TELUS has a dividend 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 $0.78 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 155.1%.

TELUS Price Performance

TELUS stock traded up $0.12 during mid-day trading on Wednesday, hitting $15.91. The company's stock had a trading volume of 2,283,236 shares, compared to its average volume of 3,409,910. The company has a quick ratio of 0.59, a current ratio of 0.86 and a debt-to-equity ratio of 1.72. The stock has a market capitalization of $24.26 billion, a P/E ratio of 34.58, a P/E/G ratio of 4.78 and a beta of 0.73. TELUS has a twelve month low of $13.24 and a twelve month high of $17.26. The stock's fifty day moving average price is $16.22 and its two-hundred day moving average price is $15.40.

TELUS (NYSE:TU - Get Free Report) TSE: T last posted its quarterly earnings results on Friday, August 1st. The Wireless communications provider reported $0.16 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.17 by ($0.01). The business had revenue of $3.74 billion during the quarter, compared to analyst estimates of $3.63 billion. TELUS had a return on equity of 9.10% and a net margin of 4.67%. The company's quarterly revenue was up 2.2% compared to the same quarter last year. During the same quarter last year, the firm posted $0.25 EPS. Research analysts forecast that TELUS will post 0.71 earnings per share for the current year.

Analysts Set New Price Targets

TU has been the topic of several research analyst reports. Scotiabank reiterated an "outperform" rating on shares of TELUS in a research report on Tuesday, July 15th. Canaccord Genuity Group lifted their price objective on shares of TELUS from $20.25 to $21.50 and gave the company a "hold" rating in a research note on Monday, May 12th. Finally, National Bankshares reaffirmed a "sector perform" rating on shares of TELUS in a research note on Monday, May 12th. Eight analysts have rated the stock with a hold rating and one has assigned a buy rating to the stock. According to data from MarketBeat.com, the stock currently has an average rating of "Hold" and a consensus target price of $21.50.

TELUS Company Profile

TELUS Corporation, together with its subsidiaries, provides a range of telecommunications and information technology products and services in Canada. It operates through Technology Solutions and Digitally-Led Customer Experiences segments. The Technology Solutions segment offers a range of telecommunications products and services; network services; healthcare services; mobile technologies equipment; data services, such as internet protocol; television; hosting, managed information technology, and cloud-based services; software, data management, and data analytics-driven smart food-chain and consumer goods technologies; home and business security; healthcare software and technology solutions; and voice and other telecommunications services, as well as mobile and fixed voice and data telecommunications services and products.