TELUS Corporation (NYSE:TU) Plans C$0.42 Quarterly Dividend

Key Points

• TELUS declared a quarterly dividend of C$0.4184 per share, payable July 2 to shareholders of record on June 10, with the ex-dividend date also set for June 10.
• The dividend implies a 13.1% yield, but TELUS’s payout ratio is very high at 152.5%, suggesting earnings do not currently fully cover the dividend.
• The company recently missed earnings estimates, reporting $0.15 EPS versus $0.18 expected, while revenue also came in slightly below forecasts at $3.83 billion.

TELUS Corporation (NYSE:TU - Get Free Report) TSE: T declared a quarterly dividend on Friday, May 8th. Stockholders of record on Wednesday, June 10th will be given a dividend of 0.4184 per share by the Wireless communications provider on Thursday, July 2nd. This represents a c) annualized dividend and a dividend yield of 13.1%. The ex-dividend date is Wednesday, June 10th.

TELUS has increased its dividend by an average of 0.1%annually over the last three years and has increased its dividend every year for the last 5 years. TELUS has a payout ratio of 152.5% indicating that the company cannot currently cover its dividend with earnings alone and is relying on its balance sheet to cover its dividend payments. Research analysts expect TELUS to earn $0.72 per share next year, which means the company may not be able to cover its $1.22 annual dividend with an expected future payout ratio of 169.4%.

TELUS Price Performance

Shares of TU stock traded down $0.15 during mid-day trading on Friday, hitting $12.74. The company had a trading volume of 6,251,883 shares, compared to its average volume of 5,746,569. TELUS has a 52-week low of $11.69 and a 52-week high of $16.74. The stock's 50 day moving average price is $12.89 and its 200-day moving average price is $13.41. The company has a debt-to-equity ratio of 1.65, a current ratio of 0.86 and a quick ratio of 0.81. The company has a market capitalization of $19.73 billion, a P/E ratio of 24.50, a P/E/G ratio of 4.71 and a beta of 0.61.

TELUS (NYSE:TU - Get Free Report) TSE: T last released its earnings results on Thursday, February 12th. The Wireless communications provider reported $0.15 EPS for the quarter, missing the consensus estimate of $0.18 by ($0.03). TELUS had a return on equity of 8.42% and a net margin of 5.42%.The company had revenue of $3.83 billion during the quarter, compared to analysts' expectations of $3.85 billion. During the same period last year, the firm posted $0.25 EPS. Equities research analysts forecast that TELUS will post 0.7 earnings per share for the current year.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in TU. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC grew its holdings in shares of TELUS by 1.5% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 779,692 shares of the Wireless communications provider's stock worth $11,181,000 after purchasing an additional 11,900 shares during the last quarter. Cetera Investment Advisers grew its holdings in shares of TELUS by 1.9% in the second quarter. Cetera Investment Advisers now owns 46,099 shares of the Wireless communications provider's stock worth $739,000 after purchasing an additional 841 shares during the last quarter. Legal & General Group Plc grew its holdings in shares of TELUS by 159.5% in the second quarter. Legal & General Group Plc now owns 37,274 shares of the Wireless communications provider's stock worth $597,000 after purchasing an additional 22,912 shares during the last quarter. EverSource Wealth Advisors LLC grew its holdings in shares of TELUS by 67.7% in the second quarter. EverSource Wealth Advisors LLC now owns 8,698 shares of the Wireless communications provider's stock worth $140,000 after purchasing an additional 3,510 shares during the last quarter. Finally, Marshall Wace LLP bought a new position in shares of TELUS in the second quarter worth about $3,617,000. 49.40% of the stock is currently owned by institutional investors.

About TELUS

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.