When the market feels unsure, it’s tempting to take a seat on the sidelines and look ahead to issues to calm down. However typically, the neatest buyers are those who lean in, particularly in terms of blue-chip shares providing long-term worth. For Canadians seeking to make investments $3,500 proper now, TELUS (TSX:T) stands out as one of many smartest selections on the TSX. With a dependable dividend, robust development in healthcare and tech, and a customer-first technique, it is a inventory constructed for long-term success.
TELUS inventory
TELUS isn’t simply one other telecom. Sure, it gives wi-fi and web providers to tens of millions of Canadians, however its enterprise has expanded far past cell telephones and fibre. The corporate strategically invested in digital healthcare and know-how options, creating new development streams that add worth properly past conventional telecom margins. That diversification paid off, particularly as demand for digital care and digital connectivity has continued to rise.
In its most up-to-date earnings report for Q1 2025, TELUS reported consolidated income of $5.1 billion, up 3% from the identical interval final 12 months. Adjusted earnings earlier than curiosity, taxes, depreciation and amortization (EBITDA) climbed 4% 12 months over 12 months to $1.7 billion, displaying that TELUS is rising not simply the highest line but additionally the profitability of its enterprise. Internet revenue attributable to widespread shareholders was $365 million, or $0.25 per share. The corporate added 218,000 new buyer connections through the quarter, together with 39,000 new cell phones and 29,000 new web subscribers. These are robust numbers in a aggressive business the place development is commonly gradual and incremental.
Greater than telecom
What actually makes TELUS totally different from different telecoms is its funding in TELUS Well being and TELUS Worldwide. TELUS Well being now providers tens of millions of Canadians with digital care, digital pharmacy, and well being information platforms. In Q1 2025, this section grew its income by 12% and adjusted EBITDA by 30%. That’s substantial development in part of the enterprise that didn’t even exist a decade in the past. It offers TELUS a foothold in one of many world’s fastest-growing sectors, whereas nonetheless producing money from its conventional infrastructure spine.
TELUS Worldwide, which gives a digital buyer expertise and synthetic intelligence (AI) options for companies world wide, continues to scale as properly. Whereas nonetheless a smaller contributor to whole income, it helps place TELUS as a forward-looking firm that’s aligned with digital traits.
Worth and revenue
One other main purpose to love TELUS is its dividend. As of right this moment, the inventory yields round 7.5%, with a quarterly payout of $0.3636 per share. TELUS has raised its dividend 23 occasions since 2011, and administration not too long ago confirmed they intend to develop it by 3% to eight% yearly by means of a minimum of 2028. And with a payout ratio beneath 75% of free money stream, it’s a dividend that appears sustainable.
TELUS additionally invests closely in its infrastructure, which retains prospects loyal and future-proofs the enterprise. In 2024, it dedicated over $3.5 billion to capital expenditures, increasing 5G protection and fibre networks throughout Canada. That may appear to be lots, however in telecom, staying forward in velocity and repair issues. TELUS has constantly ranked excessive in buyer satisfaction, and its churn charge stays one of many lowest within the business. Which means prospects stick round, which helps secure income and margin development over time.
From a valuation standpoint, TELUS appears to be like enticing. The inventory is down from its highs, buying and selling at about $22 per share as of writing. That offers buyers an opportunity to purchase right into a high-quality firm at an affordable worth. Its ahead price-to-earnings ratio is at 28, whereas its long-term earnings development is supported by its increasing enterprise segments and robust free money stream.
Backside line
For Canadians interested by the place to park $3,500 for development and revenue, TELUS provides a uncommon mixture. It’s secure, diversified, and progressive, with a monitor file of delivering shareholder returns. Whether or not you’re investing by means of a TFSA or RRSP, that is the sort of inventory that pays you to be affected person. Whereas others debate the route of the market, TELUS quietly connects properties, helps medical doctors, and builds digital options, turning your funding into long-term worth.
