Q: Hi 5i,
I've been thinking about adding Telus to my RRIF for its dividend of over 7% and slow but hopefully steady growth over time. However, a service I subscribe to puts its Earnings Payout Ratio at 251% and its FCF Payout Ratio at 116%. And also says its debt-to-equity ratio is not healthy. Are these numbers accurate, and could I have your thoughts on buying T at today's price and holding 5 years? And could you also compare it to POW for the same 5 year hold.
Thanks 5I,
Peter
I've been thinking about adding Telus to my RRIF for its dividend of over 7% and slow but hopefully steady growth over time. However, a service I subscribe to puts its Earnings Payout Ratio at 251% and its FCF Payout Ratio at 116%. And also says its debt-to-equity ratio is not healthy. Are these numbers accurate, and could I have your thoughts on buying T at today's price and holding 5 years? And could you also compare it to POW for the same 5 year hold.
Thanks 5I,
Peter
5i Research Answer:
Dividends are paid with cash, of course, not earnings, so we do prefer looking at cash flow...