Q: One more time on Telus: the elevated payout ratio and the fact that they're not using dollars from the profitable Telus International is a huge concern but has the recent purchase of Workplace Options improved the picture in your view?
5i Research Answer:
Yes; while at $500M the acquisition is small (T market cap $33B) Telus is slowly but consistently expanding its reach in health and non-telco businesses. It also of course raised its dividend again last week. Despite sector challenges, the stock is up 11% YTD and still looks the best in the Canadian sector to us.