Friday, November 6, 2009

Telus fails to raise dividend

Canadian telecommunications firm Telus (T.A) has failed to raise it's dividend for the first time in several years. Telus left it's quarterly dividend at $0.475/share for payment on January 4, 2010, the fifth straight quarter of this payment amount.

Some analysts believe that Telus is viewing 2009 as a year of investment in their business and they will resume dividend growth in 2010. Telus is striving to get ahead of the competition as they compete with Bell (BCE) and Rogers (RCI.B) among others including new potential entrants in Canada.

Telus announced earnings today that beat analysts estimates but were still virtually flat from last year at $0.88/share. They also lowered their full year sales and earnings outlook. The best analysts can say is that things don't seem to be getting any worse in the wireless area.


Think Dividends said...

Remember Telus cut their Dividend from $0.35 to $0.15 in 2001.

The Rat said...

I have shares in Telus and I like hte strong divvy. It better not decrease! I'm thinking that now that they have iPhones available, it may bring some positive aspects to the results of next quarter.

Nice thread.

hooker said...

They did initiate a 3% share discount for the reinvestment of divis in their DRIP.