Telus Corp T.T

RE:Globe & Mail

[YoungH1isback]

Yep....Telus is one of those companies/sotcks that has tremendous growth potential. I think there is some downside risk if the market was to correct since this stock seems to have a little bit of volatility and really high daily volumes, but I think the upside for Telus if you have a mid-to-long term horizon is huge. The dividend is safe and will likely keep growing, so it's a nice bonus to have and can be reinvested back into more stock on any dips. A dividend yield of about 4.8% is right in that sweet spot where you get some good tangible cash from owning the stock, but even if the stock goes down significantly at some point, the divy will be safe even at higher yields because Telus cash flow is so strong. If they can weather the Covid pandemic as well as they did according to their lastest results, than they will continue to thrive and grow post-pandemic. They are one of the companies that was well positioned for post-pandemic tech oriented solutions. This is where they have an edge up on Bell and Rogers because they've expanded into other sectors and are not just a telecom company anymore. 

retiredcf wrote:

I’ve been sitting on a pile of “cash” in my model dividend portfolio.

Now, it’s time to go shopping.

First, I’ll provide a brief update on the portfolio’s performance.

Through Feb. 18, the model Yield Hog Dividend Growth Portfolio posted a total return – including dividends – of nearly 30 per cent since inception on Oct. 1, 2017. This works out to an annualized total return of about 8.1 per cent, which is in line with the S&P/TSX Composite Index’s annualized total return over the same period.

Capital gains are wonderful, but the portfolio’s core mission is to generate a growing income by investing in stocks that raise their dividends regularly. On that score, the portfolio continues to deliver.

Thanks to these and dozens of other increases – plus regular dividend reinvestments – the portfolio is now churning out about $5,747 of dividend income annually, based on current dividend rates, up from $4,094 at inception, for an increase of 40 per cent. The portfolio’s value, meanwhile, has risen to $129,953 from an initial $100,000.

(Note: The model portfolio’s dollars are virtual, but I own all of the stocks personally and can confirm that the dividend growth strategy works just as well in the real world.)

Today, I’m announcing two purchases that will give the portfolio’s income another boost.

 

First, I’ve added 50 shares of Telus Corp.  for a total of 250 shares.

Telus offers an attractive dividend yield of 4.8 per cent. What’s more, the company is aiming to increase its dividend at an annual rate of 7 to 10 per cent through the end of 2022. Dividends aren’t official until the board declares them, but based on Telus’s recent performance and future growth potential I am confident the company will deliver.

This month, Telus announced strong fourth-quarter subscriber numbers and completed an initial public offering of Telus International, which provides digital services to more than 600 companies. Telus retained control of Telus International and will continue to benefit from its growth as a publicly traded company.

Telus has several other subsidiaries – such as Telus Health and Telus Agriculture – that will also contribute to growth in coming years, in addition to its core wireless, internet and TV businesses that provide a steady source of cash flow.

“We view Telus as the ‘growth play’ within the sector,” Drew McReynolds, an analyst with RBC Dominion Securities, said in a recent note.