Telus Fails to Raise Dividend

Canadian telecommunications firm Telus (TU) has failed to raise its dividend for the first time in several years. Telus left its quarterly dividend at $0.475/share for payment on January 4, 2010, the fifth straight quarter of this payment amount.

Some analysts believe that Telus is viewing 2009 as a year of investment in their business and they will resume dividend growth in 2010. Telus is striving to get ahead of the competition as they compete with Bell (BCE) and Rogers (RCI) among others including new potential entrants in Canada.

Telus announced earnings Friday (see earnings call transcript here) that beat analysts estimates but were still virtually flat from last year at $0.88/share. They also lowered their full year sales and earnings outlook. The best analysts can say is that things don't seem to be getting any worse in the wireless area.

Comments

[David Van K...:]

No surprise here. I am currently culling through dividend stocks for the upcoming edition of "The Top 40 Dividend Stocks for 2010," and Telus did not make it through the first round of qualifying tests. 169 other stocks did.

Nov 08 11:19 AM