Telus Shares Soar 7.10% on Dividend Hike, Q1 Growth

Telus Corporation (TU) shares surged 7.10% today, reaching their highest level since March 2025 with an intraday gain of 7.23%.

The strategy of buying TU shares after they reached a recent high and holding for 1 week yielded moderate returns over the past 5 years, with a 5-year CAGR of 5.98%. While the strategy captured some of Telus' steady growth, it underperformed the broader market, as evidenced by the S&P TSX 60's 7.02% CAGR over the same period. The recent high-rolling approach worked well during the first 1-2 weeks, with an average weekly return of 1.54% and a 1-month annualized volatility of 12.5%. However, the strategy faced challenges in the long term, with diminishing returns as time went on, highlighting the importance of considering market conditions and Telus' performance beyond immediate reactions to highs.

Telus Corporation recently announced a 3.5% increase in its quarterly dividend to CAD 0.4163 per share. This move underscores the company's financial stability and its commitment to delivering value to shareholders, which has likely contributed to the positive market sentiment surrounding the stock.

In the first quarter of 2025, Telus reported a robust financial performance, with significant growth in operational revenues and customer base. The company added a total of 218,000 mobile and fixed customers, driven by the addition of mobile phones and connected devices. This strong customer growth reflects the high demand for Telus's services and its successful market strategies.

The surge in Telus's stock price is a result of the company's strong financial performance and positive market sentiment. The increase in dividends and the robust customer growth have collectively contributed to the recent upward movement in the stock price, making it an attractive option for investors.