Q: hi,
I just used free google "AI" thing, asking it about Canadian mid/large cap stocks performance post a significant (25%or more) dividend cut, from one day post to one year post. Google says average decrease up to 8-15% in the first 3 months, but overall in the positive 5-8 % by one years time. with this in mind, do you feel Telus is a good stock to pick up ( around10-15%) below the immediately pre-dividend cut price? ie does Telus become a better investment overall after a dividend cut? or is the ship still sinking?
cheers, Chris
I just used free google "AI" thing, asking it about Canadian mid/large cap stocks performance post a significant (25%or more) dividend cut, from one day post to one year post. Google says average decrease up to 8-15% in the first 3 months, but overall in the positive 5-8 % by one years time. with this in mind, do you feel Telus is a good stock to pick up ( around10-15%) below the immediately pre-dividend cut price? ie does Telus become a better investment overall after a dividend cut? or is the ship still sinking?
cheers, Chris
5i Research Answer:
T still has challenges, but we think it is OK and has some potential. We would view it more as a 'buy slowly' than an outright buy. We think it is safe to say that some dividend cut is being priced in, but the degree of which is uncertain. Many stocks do recover after a period of time after a cut. We would say it is an OK stock. 'Good' might still be a small stretch.