Q: I own both.
I would appreciate if you could compare telus to BCE at the same point before BCE cut it's dividend with regards to similarities / differences , position, cash flow, ability to pay dividend. I am worried that Telus will do the same and cut it's dividend in 2026. Is Telus at the same teetering point or better off ?
I would appreciate if you could compare telus to BCE at the same point before BCE cut it's dividend with regards to similarities / differences , position, cash flow, ability to pay dividend. I am worried that Telus will do the same and cut it's dividend in 2026. Is Telus at the same teetering point or better off ?
5i Research Answer:
Over the last 12 months, Telus generated $4.8 bln in operating cash flows and paid $1.6 bln in dividends. Free cash flow was $980 mln. Telus is looking at higher levels of cap-ex in the future but their current cash flow profile likely supports a bit of this. Markets look to be pricing in a dividend cut and Telus may just decide to do it (no requirement for them to pay a dividend) but given the cash flows, we don't think there is an obvious danger of a dividend cut here.