Q: Please provide your thoughts about Telus.
I ended up buying BCE before they cut dividend. I know there is no crystal ball, but would you have a similar concern about Telus.
I ended up buying BCE before they cut dividend. I know there is no crystal ball, but would you have a similar concern about Telus.
5i Research Answer:
No dividend is guaranteed, but we do not see T cutting in the near to medium term. The company is taking steps to improve its financial picture. The stock has recovered a bit. T still generates close to $5B in cash flow. It has assets it can sell if it needs to. It is expected to show EPS growth this year. Now, it still has challenges, don't get us wrong. But the valuation reflects these, and any change in sentiment could see the stock do better. Lower interest rates should also help both fundamentals and valuation.