Telus Corp (TU)

TELUS Corp. (T) shares fell by 0.15% to C$13.56 on Tuesday, underperforming the broader Canadian market which saw the S&P/TSX Composite Index rise by 0.66%. The company's stock closed 41.0% below its 52-week high of C$22.98, achieved on August 26th.

Telus recently cut its quarterly dividend significantly, from 41.84 cents to 18.75 cents, which was a concern for many investors. Despite this reduction, the stock still offers a high dividend yield of about 5.4% due to its substantial price decline over the past five years. While the stock's immediate reaction to the cut wasn't a drastic plunge, its long-term performance has been challenging for investors, though it remains a profitable business and a leader in the telecom sector, suggesting a potential recovery for patient long-term investors.

The article argues that Enbridge (TSX:ENB) is a superior dividend stock for income investors compared to telecom giants BCE (TSX:BCE) and Telus (TSX:T). While BCE and Telus have recently reset their dividends due to high capital costs and interest rates, Enbridge offers a slightly higher yield, a 31-year streak of dividend increases, and stable revenue from its diversified energy infrastructure business. The author recommends Enbridge as a core holding for a well-diversified portfolio due to its sustainable growth and defensive business segments.

TELUS Corp. (T) shares dropped 0.22% on Monday, closing at C$13.58, despite an overall favorable trading session for the Canadian market where the S&P/TSX Composite Index rose 0.26%. The stock is now 41.0% below its 52-week high of C$23.04, which it reached on August 25th of the previous year. This performance indicates TELUS Corp. underperformed the broader market.

Telus recently cut its quarterly dividend by 55% to $0.19 per share, a move intended to save $2.7 billion by 2028 and reduce its debt. While this makes the dividend more sustainable, the author suggests that the underlying business still faces significant challenges, including slowing population growth, high capital expenditures, and substantial leverage. Investors should consider whether Telus remains an attractive investment despite the more manageable dividend.