TELUS (TSX:TIXT) Corporation (TSE:T) announced a scheduled dividend enhancement to CA$0.3761, effective from January 2nd, offering an attractive dividend yield of 6.0%. This increase, however, represents a substantial 209% of the company's cash flows, signaling possible future cutbacks.
The company's projected EPS growth for the upcoming year stands at a robust 191.2%. Yet, if the high dividends continue at their current rate, this could lead to a hefty payout ratio of 96%. TELUS has maintained a steady dividend increase since 2013, growing from CA$0.64 annually to CA$1.45 (USD1 = CAD1.3640), representing an approximate yearly growth rate of 8.6%.
Despite this growth in dividends, TELUS has experienced a five-year EPS decline by 16%. Until there is clear evidence of consistent earnings growth, investors are being cautioned to remain vigilant.
InvestingPro Insights
InvestingPro data provides a real-time snapshot of TELUS Corporation's financial standing. With a market cap of $113.54 billion and a P/E Ratio of -15.35, the company's financial health is under scrutiny. However, the P/E Ratio adjusted for the last twelve months as of Q3 2023 is at a more favorable 8.87, indicating a higher earnings potential. Notably, the company's revenue for the same period stands at $121.75 billion, showing a growth of 1.04%.
InvestingPro Tips further shed light on the company's performance. TELUS has a commendable track record of maintaining dividend payments, having raised its dividend for 20 consecutive years. This aligns with the article's mention of TELUS's steady dividend increase since 2013. Additionally, 5 analysts have revised their earnings upwards for the upcoming period, providing a positive outlook for the company's future profitability.
InvestingPro offers a wealth of additional tips and insights for investors looking to delve deeper into TELUS's financial performance. With data updated in real-time and expert tips at your fingertips, InvestingPro is your go-to resource for informed investment decisions.
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