A 50% cut to Telus Corporation's dividends would preserve between $1 billion and $1.3 billion in cash, which the company can divert toward repaying debt and reducing its interest burden. This liquidity shift follows a dip in the stock price below $17, which inflated the dividend yield to 10.2%.
Telus ended December 2025 with a pause in dividend growth and a change to its dividend-reinvestment plan, phasing out a 2% discount on treasury shares by 2027. The company reported 1% revenue growth and 11% free cash flow growth in 2025, with revenue growth guidance of 2-4% for 2026.
Management is working to reduce the company's leverage ratio from 3.4 times in 2025 to 3.0 times by 2027. The target range for this ratio is 2.2-2.7 times. Using the savings from a dividend cut to repay debt would accelerate the achievement of this leverage target.
dividend cut announcement
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