Telus Corp.
announced a 55 percent reduction in its quarterly dividend on July 31, 2026, cutting the payout to 18.75 Canadian cents per share.
The move aims to reallocate funds toward long-term debt reduction.
The Vancouver-based telecommunications provider expects the payout reduction from 41.84 cents per share to generate approximately $2.7 billion in cumulative cash savings through 2028.
This supports its goal to reduce leverage to 3.0-times net debt to Adjusted EBITDA or lower.
Second Quarter Results
Alongside the dividend reset, Telus posted a net loss of $1.8 billion, or $1.17 per share, for the second quarter ended June 30, 2026.
This compares to a profit of $7 million in the prior-year period.
The loss stemmed primarily from a $2.1 billion non-cash impairment charge related to its Telus Digital unit.
Consolidated revenue fell to $4.92 billion from $5.08 billion, while operating cash flow rose 15 percent to $1.3 billion.
The company also eliminated its dividend reinvestment plan discount effective October 1, 2026.
It lowered its full-year guidance, forecasting consolidated service revenue to range from flat to negative 2 percent and free cash flow of $1.8 billion.
These moves represent the initial operational strategy under new President and Chief Executive Officer Victor Dodig. He established three strategic priorities aimed at strengthening the company's financial foundation.
"TELUS is built on a foundation of genuine strength – leading networks, sustained customer loyalty and growing expertise in health and AI-enabling capabilities that are increasingly central to how Canadians live and work.
The macro environment has shifted and we are responding with clarity and discipline.
Today we are announcing three strategic priorities that will strengthen our financial foundation, sharpen our operational focus and concentrate our resources on the opportunities where TELUS is best positioned to win – all in service of delivering long-term, profitable and sustainable growth," said Victor Dodig.
Executive leadership highlighted the expected compounding impact of the strategic realignment on long-term shareholder return.
"I am proud to be working alongside our experienced and capable leadership team and our 100,000 passionate and professional team members across TELUS to execute on these strategic priorities, delivering improved experiences for our customers and opening opportunities for our people, and creating value for our shareholders.
Our focus is on disciplined execution and ensuring maximum returns on every dollar of capital we deploy.
Everything I have seen since stepping into this role has only deepened my conviction – in this team and the admirable culture they have built, as well as the bright future ahead for TELUS," said Mr. Dodig.
Chief Financial Officer Gopi Chande emphasized that capital discipline and debt reduction initiatives will reinforce free cash flow stability.
"The actions we are taking establish the financial conditions for strong, profitable growth and durable, compounding free cash flow growth," said Gopi Chande.
The corporate legal team confirmed the dividend logistics following board approval.
"NOTICE IS HEREBY GIVEN that the Board of Directors has declared a quarterly dividend of $0.1875 Canadian per share on the issued and outstanding Common shares payable on October 1, 2026 to shareholders of record at the close of business on September 10, 2026," said Andrea Wood, Executive Vice President and Chief Legal and Governance Officer.
The declared dividend will be payable on October 1, 2026, to shareholders registered as of September 10, 2026.
