Telus Corporation Dividend: What Investors Need to Know in 2025

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Telus Corporation Dividend :What Investors Need to Know in 2025

Telus Corporation (TSX: T, NYSE: TU) is one of Canada’s leading telecom giants. With a strong reputation for innovation and stability, it remains a favorite among dividend investors. In 2025, the company continues to deliver consistent returns, especially through its attractive dividend policy.

Let’s break down what makes the Telus dividend worth watching.

A Steady Dividend History

Telus has built a solid reputation over the years for paying reliable dividends. Since 2004, the company has increased its dividend more than 20 times. Few Canadian companies have matched this kind of track record.

As of August 2025, the dividend yield sits around 6.5%, making it one of the higher-yielding stocks in the TSX 60. The quarterly dividend is $0.3761 per share, or roughly $1.50 annually.

That’s a strong payout, especially when compared with the Canadian banking sector or energy stocks.

Telus Dividend Growth Strategy

Telus doesn’t just pay dividends — it grows them. The company follows a multi-year dividend growth model, targeting annual increases of 7% to 10%. This plan has been in place since 2011, and despite economic pressures, management continues to reaffirm their commitment to growth.

This is good news for long-term investors who rely on growing income.

Why Telus Can Sustain Its Dividend

A few key reasons explain Telus’s dividend strength:

  1. Stable Revenue Streams

  2. Telus earns predictable income from wireless, internet, and TV subscriptions. Customers tend to stick around, even in tough times.

  3. Expanding Health & Agriculture Tech

  4. Telus Health and Telus Agriculture are emerging as growth engines. These divisions add revenue without massive infrastructure costs.

  5. Smart Capital Spending

  6. The company has been investing in 5G and fiber networks, but spending peaked in 2023. Now, with CapEx (capital expenditures) trending lower, more cash is available for dividends.

  7. Solid Free Cash Flow

  8. By mid-2025, Telus reported rising free cash flow — a key metric for dividend safety. Higher cash flow means more cushion for payouts.

Risks to Watch

Every dividend stock carries risks. Telus is no exception.

  • Rising Interest Rates
    Higher borrowing costs can eat into profits. Telus has debt from past expansions, and refinancing will cost more.

  • Competition in Telecom

  • Rogers, Bell, and regional players keep pressure on Telus’s margins. Innovation and service quality are essential to retain customers.

  • Regulatory Uncertainty

  • Changes in telecom rules or spectrum auctions could impact growth.

Still, Telus has shown an ability to manage these challenges effectively.

Is Telus a Good Dividend Stock in 2025?

Yes, for many income-focused investors, Telus remains a top pick. The dividend is reliable, growing, and well-covered by earnings. Add in potential upside from new tech ventures, and Telus looks like a solid long-term hold.

If you’re looking for passive income with stability, Telus deserves a spot on your radar.

Final Thoughts

Telus Corporation has earned its place among Canada’s best dividend stocks. In 2025, it continues to reward shareholders through smart financial management and a clear focus on long-term income.

The dividend is not just sustainable — it’s growing.

As always, investors should do their own due diligence. But if you’re building a portfolio with income in mind, Telus is worth a closer look.

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