TELUS Corporation: A Dividend Stock That's Outperforming the Market in 2025

In the world of investing, there are certain stocks that stand out from the crowd. These are the companies that consistently deliver strong performance, even in the face of market volatility. One such stock is TELUS Corporation (TU), a telecommunications giant that has been making waves in the dividend stock category in 2025. Let's take a closer look at what makes TELUS such an attractive investment option.



A History of Dividend Growth

TELUS has a long-standing commitment to returning value to shareholders through dividends. The company has maintained a consistent dividend growth program since 2011, with extensions announced in May 2013, May 2016, May 2019, and May 2022. This strategy has provided investors with a reliable and growing income stream, making TELUS an attractive option for income-oriented investors.



Semi-Annual Dividend Increases

In May 2022, TELUS announced its intention to target ongoing semi-annual dividend increases, with an annual increase in the range of 7 to 10% from 2023 through to the end of 2025. This commitment to regular dividend increases has helped to enhance the stock's appeal to income investors, who can count on a steady and growing income stream.

High Dividend Yield

As of the date provided, TELUS stock has a yield of 8.07%. This high yield is a result of the company's consistent dividend growth and its commitment to returning capital to shareholders. A high dividend yield can make a stock more attractive to income-oriented investors, as it provides a higher income relative to the stock's price.

Strong Financial Performance

TELUS's dividend growth strategy has been supported by strong financial performance. In the first nine months of 2024, the company reported an 11.3% increase in adjusted earnings per share and an 18.4% increase in operating cash flow, despite flat revenue. This strong financial performance has enabled TELUS to maintain its dividend growth strategy and continue to return capital to shareholders.

Expansion into New Sectors

TELUS has expanded its business beyond traditional telecommunications services, diversifying its revenue streams and driving growth. The company has made significant strides in healthcare, agriculture, and consumer goods services, with impressive growth in these new segments.



Why TELUS Stands Out

TELUS Corporation's dividend growth strategy, strong financial performance, and expansion into new sectors have all contributed to its outperformance in the dividend stock category in 2025. The company's commitment to returning value to shareholders, combined with its ability to navigate a challenging environment, has made TELUS an attractive option for income-oriented investors.

So, if you're looking for a dividend stock that's outperforming the market in 2025, look no further than TELUS Corporation (TU). With its history of dividend growth, high yield, strong financial performance, and expansion into new sectors, TELUS is a solid choice for investors seeking a reliable income stream and long-term growth potential.