TELUS Corporation Dividend Payment Approaching: Ex-Dividend Date is September 10th, Dividend Yield is 7.3% and Payout Ratio is 71%

TELUS Corporation is set to trade ex-dividend on September 10, with a dividend payment of CA$0.4163 per share on October 1. The company's trailing yield is 7.3%. However, the dividend is not covered by earnings and TELUS paid out a high 251% of its profit as dividends last year, raising concerns about its sustainability. The company did generate enough cash to fund the dividend, but its payout ratio is high.

TELUS Corporation (NYSE: TU) is set to trade ex-dividend on September 10, with a dividend payment of CA$0.4163 per share on October 1. The company's trailing yield stands at 7.3%. However, the dividend is not covered by earnings, raising concerns about its sustainability. TELUS paid out a high 251% of its profit as dividends last year, which is a significant cause for concern among investors and financial professionals [1].

While the company generated enough cash to fund the dividend, its payout ratio is high, indicating that the dividend may not be sustainable in the long run. This is a critical factor for investors to consider, as high dividend payout ratios can lead to financial distress if earnings do not meet expectations.

American Century Companies Inc. increased its stake in TELUS Corporation by 43.4% during the first quarter, holding 171,551 shares worth approximately $2.46 million. Other hedge funds, such as Northern Trust Corp, Ameriprise Financial Inc., BNP Paribas Financial Markets, Beverly Hills Private Wealth LLC, and Bayesian Capital Management LP, also modified their holdings in TELUS, with significant increases in their stakes [1].

TELUS recently reported a quarterly dividend of $0.3019 per share, up from the previous dividend of $0.30. The company also declared a quarterly dividend of $0.3019 per share, which will be paid on October 1. This represents a $1.21 dividend on an annualized basis and a yield of 7.3% [1].

The company's earnings report for the quarter ending August 1 showed a miss in earnings with $0.16 EPS, slightly below the consensus estimate of $0.17, despite achieving quarterly revenue of $3.74 billion, exceeding analyst expectations. The company's return on equity was 9.10%, and its net margin was 4.67% [1].

The acquisition of Telus Digital for $1.3 billion, which was announced recently, is expected to enhance Telus' AI capabilities and SaaS transformation across all lines of its business. However, the high payout ratio and the dividend not being covered by earnings are significant concerns that investors should be aware of [2].

References:

[1] https://www.marketbeat.com/instant-alerts/filing-telus-corporation-tu-shares-bought-by-american-century-companies-inc-2025-09-01/
[2] https://www.ainvest.com/news/telus-acquires-telus-digital-1-3-billion-shares-jump-16-2509/