T.TO
🇨🇦TSXCanadian TelecomTELUS Corporation
5-year price history
- TELUS added 288,000 total mobile and fixed customers in Q3 2025, expanding its base to nearly 21 million connections (up 5% YoY), and projects a minimum 10% compound annual FCF growth rate from 2026 to 2028 with 2026 FCF expected to rise to ~CA$2.4B.
- TELUS is targeting leverage reduction from 3.5x (Q3 2025) to 3.3x by end-2026 and 3.0x by late 2027, while maintaining a CA$0.4184/share quarterly dividend — the dividend growth pause preserves cash to accelerate deleveraging.
- TELUS's CA$70B five-year network investment plan across 5G, fibre, and AI infrastructure positions it as Canada's leading converged operator; TELUS Health and TELUS Agriculture verticals provide recurring non-telecom revenue streams less exposed to CRTC wholesale pricing decisions.
- TELUS paused its dividend growth program in December 2025 because its 2025 dividend obligation of ~CA$2.61B represents ~118% of free cash flow — a payout ratio 87% above its 10-year median — and a further dividend cut cannot be ruled out if 10%+ FCF CAGR targets are missed.
- The CRTC wholesale broadband decision expected in 2026 could force TELUS to open its fibre network to competitors at regulated rates, compressing the return on its multi-billion-dollar PureFibre buildout and undercutting the subscriber economics that justify the CA$70B infrastructure spend.
- TELUS carries a net debt/EBITDA ratio of 3.5x with heavy capex through the fibre and 5G buildout cycle — any sustained wireless ARPU decline from ongoing promotional pricing competition would slow FCF ramp and delay the path to a sustainable sub-100% dividend payout ratio.
Telus is the Canadian telecom to own if you want dividend growth rather than maximum current yield. The BCE vs Telus decision usually comes down to: more yield now (BCE) vs more certainty of growing yield over time (Telus). For younger TFSA investors with a long horizon, Telus's dividend growth trajectory compounds into a higher yield on cost over time. Note: Telus on NYSE trades as TU — the TFSA withholding rules apply only to the NYSE-listed shares, not T.TO.
| Account | Fit | Why |
|---|---|---|
| TFSA | Ideal | T.TO is a Canadian-listed eligible dividend payer — no US withholding risk. Dividend growth trajectory is ideal for long-horizon TFSA compounding. |
| RRSP | Good | Tax-deferred reinvestment of a growing eligible dividend. Solid core holding. |
| FHSA | Good | Lower risk than BCE with dividend growth; suitable for a 3-5 year FHSA horizon. |
| Non-reg | Good | Eligible dividend credit applies. Growing payout means yield on cost improves annually in a taxable account. |
Ideal = best tax outcome · Avoid = material drag or ineligible · Color and symbol, not color alone, indicate fit.
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