
TSE:T
This summary was created by AI, based on 82 opinions in the last 12 months.
Telus Corp (T-T) is currently facing a challenging environment characterized by intense competition, high debt levels, and concerns over its substantial dividend yield, which has elicited fears of potential cuts. Many experts highlight the company's recent lower performance, positioning it as a utility rather than a growth stock, with the current yield exceeding 9%. Despite the bleak outlook, some analysts maintain a positive stance on the company's long-term potential, driven by asset monetization and a focus on growth in digital and healthcare services. However, doubts about sustainable earnings growth persist, and while there is a consensus that the dividend may be maintained, many question its long-term viability amid elevated payout ratios and fiscal constraints. A new CEO has been appointed, raising expectations for management changes that could reshape the company's future.
Has owned this. Nothing wrong with owning it. Over time, the telcos could see their oligopoly erode with more competition. Also, higher GIC rates are hurting the telco stocks, known for their dividends. Don't sell. Wait for interest rates to stabilize. Sure, GICs pay 5%, but what about inflation? Dividend stocks are a better hedge against inflation over the long term.
Likes it, but is sensitive to higher interest rates (it is highly leveraged). They spun out the international unit, which is struggling, probably losing market share. Because of this, Telus reduced its full-year guidance. A great business and the best of the Canadian telcos, though. Will continue to grow the dividend.
Trades a premium to its peers because it has grown faster historically and have been quicker to deliver fibre to homes. But it lacks TV stations and sports teams which Rogers and BCE have. Good profit margins and ROE, but the balance sheet has too much and the PE is 21x PE, much higher than its peers. Pays a 6.5% dividend, but not his first choice.