In as we speak’s low-interest-rate atmosphere, it’s more and more tough to seek out yield. The Financial institution of Canada’s prime rate of interest of two.25% signifies that the typical bond funding is yielding a minimal quantity. That is the place the best dividend shares might be of nice assist.
Telus (TSX:T) is certainly one of Canada’s main telecom firms. Telus inventory is presently yielding a really beneficiant 9.03%, as the corporate has confronted some actual challenges in recent times. Is that this yield well worth the threat? Why is that this dividend inventory my prime choose?
Let’s discover.
What occurred?
Telus has had its share of troubles in recent times — most notably, the corporate’s heavy debt load in addition to elevated competitors within the wi-fi providers market. The outcome: the corporate can not afford its dividend-growth plan. The curiosity expense has virtually doubled within the final 5 years, and Telus’s payout ratio has been more and more stretched. One thing needed to give.
So, as you understand, Telus made the transfer to halt its dividend-growth program. This hit Telus inventory onerous, and it’s down virtually 19% from its 2025 highs. The excellent news is that its present dividend was maintained. And Telus inventory is offering its shareholders with a really beneficiant yield.
The query that we buyers need to ask ourselves is whether or not this dividend yield is just too dangerous. Effectively, the corporate supplied a really bullish three-year money stream goal — free money stream progress at a minimal compound annual progress fee of 10%. This shall be pushed by Telus Digital’s robust money stream technology, the Terrion partnership, and a few key divestitures.
Additionally, latest occasions have additional elevated my confidence on this dividend inventory as a prime choose — particularly, elevated insider shopping for and Telus’s transfer towards the monetization of Telus Well being.
Telus inventory insider shopping for
It’s often regarded as an excellent signal when insiders purchase up their very own inventory. And rightly so. Throughout the months of November and December 2025, Telus’s senior administration, together with CEO Doug Entwhistle, purchased 357,090 shares within the open market. This equates to greater than $6.2 million price of shares. Additionally, with the intention to additional align the corporate’s CEO with shareholders, Mr. Entwhistle has agreed to take his total wage within the type of Telus shares and plans to proceed to take action for the foreseeable future.
Along with this, the corporate purchased again 2.3 million shares at a mean worth of $17.39. These purchases are a part of Telus’s $500 million price of frequent shares that it’s entitled to purchase again in its share-repurchase program.
Telus Well being monetization
As a part of Telus’s plan to cut back its debt load, the corporate has employed advisors, TD Securities and Jeffries to contemplate completely different choices for monetizing Telus Well being. This would offer Telus with funds that will speed up its deleveraging and supply the corporate with a more healthy steadiness sheet and elevated monetary flexibility — all good issues that additional strengthen my confidence in Telus as my prime choose.
Telus has demonstrated the worth of Telus Well being in latest quarters. In its most up-to-date quarter (Q3/26), Telus Well being posted an 18% enhance in its income and a 24% enhance in its adjusted earnings earlier than curiosity, taxes, depreciation, and amortization (EBITDA).
This progress is unquestionably not going unnoticed. As Telus seems to be for a accomplice, it appears extremely seemingly to achieve success. Administration has urged a one-year timeline on the newest. This can finally go a great distance in strengthening Telus’s monetary energy and investor sentiment towards the inventory.
The underside line
Whereas Telus is clearly in injury management mode, the very fact is that this firm has quite a bit going for it. As mentioned on this article, Telus is pursuing completely different paths with the top aim of decreasing leverage whereas supporting future progress.
For my part, this high-yield dividend inventory is a prime choose. It’s a really compelling alternative for buyers to seize a beneficiant yield, which is able to translate into robust rapid earnings.
