Is Telus Corp. (TU) the Best Telecom Stock to Invest In Now?

In the ever-evolving telecom landscape, investors are constantly on the lookout for the next big opportunity. One company that has been making waves in the industry is Telus Corp. (TU), a leading Canadian telecommunications provider. But is TU the best telecom stock to invest in now? Let's delve into the data and expert opinions to find out.

First, let's examine TU's financial performance. In the third quarter of 2024, TU reported strong customer growth, adding 347,000 net customers, including 289,000 mobile subscribers and 34,000 internet subscribers. This impressive growth is a testament to TU's customer-centric approach and innovative product bundles. TU's focus on customer loyalty and satisfaction has resulted in industry-leading postpaid mobile phone churn rates below 1% for over a decade.



TU's strategic focus on customer-centricity and innovative product offerings has contributed to its growth and profitability. The company's heavy investment in network infrastructure and technology has positioned it as a leader in the Canadian telecom sector. TU's commitment to innovation is evident in its initiatives like TELUS SmartEnergy and TELUS HomeView, which enhance customer engagement and retention.



When it comes to dividends, TU has consistently increased its payout, with a 5-year dividend growth rate of 7.5%. This is higher than the average of its peers, which is around 5%. Additionally, TU's dividend payout ratio of 60% indicates a sustainable dividend policy. As of 2024-12-14, TU offers a dividend yield of approximately 3.44%, which is higher than the average yield of its peers in the Communication Services sector.



Analysts have a positive outlook on TU, with an average rating of "Buy" and a 12-month stock price forecast of $26.0, indicating a potential 78.69% upside from the latest price. TU's strong financial performance, customer-centric approach, and sustainable dividend policy make it an attractive investment option in the telecom sector.

In conclusion, Telus Corp. (TU) is a strong contender for the best telecom stock to invest in now. Its impressive customer growth, strategic focus on customer-centricity, and sustainable dividend policy make it an attractive option for investors seeking exposure to the Canadian telecom sector. However, it is essential to conduct thorough research and consider multiple perspectives before making any investment decisions.