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.
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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.
