Telus just keep getting better!

Telus just keeps getting better? Really? Telus is selling for $21.765 at this moment. It is so far into the bear market zone, all hope for a quick recovery is hibernating. Telus is down and may stay down for some time. With its payout ratio now at 261%, Telus may suffer the unthinkable: a dividend reduction. How could it be getting better?

Let's look at the dividend first. It is yielding almost 7% today. Buy Telus at today's price, a price that has some of the fear of a possible dividend cut already factored in, and even if the dividend gets reduced you will probably enjoy a good yield. You will be paid well to wait for a recovery.

Telus is outperforming its main telecom competitors, BCE and Rogers. Of the three, Telus had the best telecom revenue and EBITDA growth to report at the end of the last quarter in 2023. Telus's strength may be in its good management. For instance, Telus has replaced most of its legacy copper network with fiber. It started early and it is finishing early. There's a lot of good news behind the scenes, and not that far behind, when you begin reading the financial reports on Telus.

So, am I buying more Telus? Sadly, no. I do not have the free cash to tie up in Telus. Having admitted this, I will also admit to why I am so low in cash: Telus. Yes, I bought Telus when I thought it had lost as much as it would. It seemed to be on the road to recovery. It wasn't. I have lost thousands.  And yet, I smile.

Come April 1, I will reap my reward for holding Telus; I will pocket a dividend of $0.376 for every Telus share I own and I own a lot. Too much. But, as a retiree, my Telus stock is paying the bills. I look forward to holding Telus for a year or two or even longer and paying oodles of bills with the yield whether it gets cut or not. 

When Telus finally recovers, I will take my profits and run, run to the nearest good looking investment opportunity available at that time. There are always places to stash one's money even if its just a money market fund.