If you happen to’re attempting to find dividend earnings in Canada, TELUS (TSX:T) is tough to miss. At a inventory value of $18.64 and an annual dividend of $1.67 per share, the telecom big is presently yielding near 9%. That’s a significant earnings stream, and it raises a really sensible query for earnings buyers: what number of shares do you really have to hit $10,000 a 12 months in dividends?
The mathematics is easy. Divide $10,000 by the $1.67 annual dividend, and also you get roughly 5,988 shares.
At at present’s value of $18.64, constructing that place would price you roughly $111,600. It is a vital chunk of capital, however the earnings it generates is equally vital.
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TELUS stands out as an earnings inventory
TELUS is a high-yield TSX inventory with bettering fundamentals. That issues as a result of a fats dividend that may’t be sustained is worse than no dividend in any respect.
In 2025, TELUS generated a file $2.2 billion in free money stream. That’s an 11% soar from 2024, on prime of 12% progress in 2024 and 38% progress in 2023.
That’s three consecutive years of compounding progress in free money stream (FCF). The telecom big is now guiding for about $2.45 billion in free money stream for 2026, indicating an annual progress of 10%. Furthermore, TELUS has dedicated to no less than 10% compounded annual FCF progress by way of 2028, in accordance with an organization assertion from December 2025.
The present quarterly dividend sits at $0.4184 per share, and TELUS has confirmed it’s going to proceed paying at that stage. The money dividend payout ratio is sitting round 70% of free money stream on a potential foundation.
TELUS has paused its dividend progress
TELUS made a notable announcement in December 2025: it’s pausing dividend progress till its share value higher displays the corporate’s long-term prospects. That’s an essential distinction. The dividend isn’t being lower. It’s merely not rising proper now.
The Canadian dividend inventory is concentrated on deleveraging.
- Its internet debt-to-EBITDA (earnings earlier than curiosity, tax, depreciation, and amortization) ratio improved from 3.9 occasions on the finish of 2024 to three.4 occasions by the tip of 2025.
- The goal is 3.3 occasions or decrease by the tip of 2026, and roughly 3 times by the tip of 2027, in accordance with the corporate.
TELUS can be regularly decreasing its discounted dividend-reinvestment plan (DDRIP) low cost, from 2% to 1.75% in early 2026, with plans to remove it totally by 2028.
As soon as the steadiness sheet reaches the goal leverage vary and the DDRIP is totally wound down, dividend progress is predicted to renew.
A robust efficiency in This autumn
Past the dividend mechanics, TELUS continues to carry out operationally. The corporate posted over a million mixed cell and glued buyer internet additions in 2025, the fourth consecutive 12 months above that threshold.
- Its postpaid cell phone churn charge was simply 0.97% for the total 12 months, marking the twelfth straight 12 months beneath 1%.
- TELUS Well being and TELUS Digital are each anticipated to ship double-digit EBITDA progress in 2026, in accordance with commentary from TELUS President and CEO Darren Entwistle.
- AI-enabling capabilities income grew 44% 12 months over 12 months in This autumn, reaching $229 million.
- The corporate is concentrating on roughly $2 billion in income from AI-enabling capabilities by 2028.
The underside line
If you need $10,000 per 12 months in dividend earnings from TELUS, you want about 5,988 shares, an funding of roughly $111,600 at at present’s costs. That’s not a small quantity. However what you’re getting in return is an almost 9% yield backed by a telecom big with file FCF, a reputable deleveraging plan, and a number of progress engines firing throughout telecom, well being, and AI.
The dividend isn’t rising proper now, but it surely’s steady and well-covered. For earnings buyers keen to be affected person, TELUS appears like a inventory value placing in your watchlist and presumably your portfolio.
