Telus Corp (T.TO)

Balance sheet is slowly slipping away, so it's paying the dividend out of capital. With new CEO, you're getting a "money man" replacing an "operations" person. Suspects he'll cut dividend further and get company set up for growth.

He's been in this job for 40 years, and every time a company cuts the dividend there are consequences. Not sure you want to stick around for that. Broken for a long time. Move on. If you don't own it, look elsewhere.

They are not happy with its performance but he likes the dividend. His strategy is to wait for a meaningful downturn in the market and since Telus tends to hold up better than the market, he would sell then and re deploy the cash.

Not many 9% dividends left in the market, so they bought this in the last couple of months for their income growth fund. Even if yield is cut to 5%, still one of the better yields in the market.

New CEO may lead to better things. Could sell Telus Health. Debt is an issue, and US rate cuts seem to be off the table. Tricky, but worth the risk.

Instead, look at ZWU. Not a great time to sell Telus and make the switch, but it's what he's been recommending.

If a dividend's cut, initial reaction is for stock price to fall. But a more reasonable dividend gives flexibility to buy back shares, pay down debt, do M&A. Short-term pain will give way to long-term gain for the company. 

Not increasing dividend, but they should just have cut it (as BCE did). New CEO might revisit this decision. Yield is 8.9%, unsustainable.

For the Canadian telcos, regulatory challenges won't go away. In response, the telcos pledged to invest in rural areas, but those areas now have Starlink. Also, Freedom Mobile and Quebecor have added a lot more competition. The telcos won't bounce back anytime soon.

Not a fan of the telcos; doesn't like the oligopoly.  All the telcos have declined from lower immigration to Canada. Valuation trades in line with peers. He's not excited by the space, but it's a decent place to hide your capital, paying a reasonable yield though there is a chance it could be reduced.

Great question. New CEO did a great job with CM. Last quarter was in line. Not looking for a lot of growth with the telcos. Hasn't seen a lot of pricing discipline, which is delaying recovery in these names.

Cheap, with an OK growth rate. Payout ratio too high. Nice dividend, but he thinks it probably (more than 50% chance) will be cut 30-40%. If so, stock likely to rally.

Lots of moving parts. All telecoms are helped by increased immigration. People leaving would impact the numbers needing telco services, but will that actually happen? Mature business. New CEO, who may focus on paying down debt. Dividend flat, but market's now expecting a cut. 

She welcomed the new CEO, but the market has been selling this since. Telus needs to reduce debt and monetize assets like selling Telus Health or real estate. The CEO has experience doing this. Telus is growing faster than the other telcos and is ahead in their capex spending in 5G. The stock is down because of expectations that the new CEO will cut the dividend, which she does not want to happen but it could happen. She sees long-term value. Pays a 9% dividend now.

Take a step back and look at the entire sector -- impacted by regulatory changes on immigration, and competitive pricing has weighed it down.

Operational outlook seems reasonable, but not overly excited about it. He prefers RCI.B.

New CEO has a banking background. Dividend health is questionable (may not decline, but won't increase). Below 200-day MA, which is sliding lower (as is the 5-year weekly average).

Need to see interest rates in Canada move down before some of the high-dividend names look more attractive. He owns no telcos.

Great dividend. At these levels, doesn't need a lot to go well to deliver a pretty good result. Cut costs, positioning for better earnings growth despite muted revenue growth. Increased prices are way overdue -- not great for consumers, but should boost stocks.

At beaten-down price, a 10% annualized return (including dividend) for the next few years is very achievable.

Don't get attracted by a high dividend. He owns this, Rogers and BCE. He favours slightly Rogers because they monetize their sports assets. What's plagued all of them is wireless pricing in Canada. If you're overweight this, trim it.