Telus Corp T.T

Analysis

[Schussing56]

TD Securities:

Despite solid results in Q3/23 we have decided to lower our 2024E EBITDA/ FCF by getting more conservative in two key areas:

1. We have assumed slower revenue/EBITDA growth in wireline in both Q4/23 and FY2024, just in case either macro headwinds or competitive intensity versus Rogers Cable escalate.

2. We have assumed continued elevated cash restructuring costs into 2024 (including amounts expensed but not paid in 2023), which has lowered our 2024E FCF even more than the reduced EBITDA.

TD Investment Conclusion Lowered estimates, plus a lower target price for TIXT (now US$10.50, versus US $18.00 when we last published on TELUS), have lowered our T target price by $2.00, to $27.00. This still justifies a BUY rating, especially with yet another dividend increase this quarter (yield is now 6.2%), but we now believe it will take until 2025 to get the dividend payout ratio under 100%.

[Red_Deer]

This still justifies a BUY rating, especially with yet another dividend increase this quarter (yield is now 6.2%), but we now believe it will take until 2025 to get the dividend payout ratio under 100%. Here is a QUESTION I Have Had for DECADES Does AnyOne Know IF the PayOut Ratio TAKES INTO ACCOUNT All the DRIP Shares eh ??? The MORE Drip Shares = LESS Actual CASH PAYOUT So IS THIS Taken

[Milhouse123]

T's dividend payout ratio metric does take into account the DRIPs.   In the recent quarter's MD&A document, it shows: $2063M in dividends paid for the last 4 quarters less $748M in DRIPs = $1315M net dividends paid out in cash and $1492M in Free Cash Flow $1315M / $1492M = 88% Dividend payout ratio or over 138% if you do not include the DRIPs  Some additional

[Red_Deer]

EXCELLENT Analysis MilHouse !!!! And You HAVE CONFIRMED That ANALYSTS do NOT BOTHER to Calculate the TRUE  CASH PayOut Ratio__THUS Putting out reports With MISLEADING/NEGATIVE Ratios As PER Recent TD Report....WhereAs YOUR ANALYSIS Confirmed an 88% ratio RIGHT NOW  TD Investment Conclusion Lowered estimates, plus a lower target price for TIXT (now US$10.50, versus US $18.00 when we