Telus (Tsx:t) took a beating lately, however is catching a little bit of a tailwind in 2026. Traders with a contrarian investing model are questioning if Telus is oversold and good to purchase for a self-directed Tax-Free Financial savings Account (TFSA) or Registered Retirement Financial savings Plan (RRSP) portfolio centered on dividend shares.
Telus share value
Telus (Tsx:t) trades close to $19.25 on the time of writing. The inventory is up greater than 6% to this point in 2026, however is manner off the $30 mark it topped 4 years in the past.
Telus carries lots of debt on its steadiness sheet. That is frequent for communications companies that want to take a position important capital to construct and improve in depth wireline and wi-fi community infrastructure, significantly in a rustic like Canada with a comparatively small inhabitants unfold out throughout an unlimited geographic space. The sharp rise in rates of interest that occurred in 2022 and 2023 brought about the preliminary slide in telecom shares. Greater debt bills cut back income and might minimize into money that’s accessible for debt discount or dividend funds.
Price cuts in 2024 and 2025 supplied reduction for a lot of rate-sensitive corporations, however Telus confronted different challenges that stored the inventory beneath strain. A value battle within the Canadian communications sector impacted income and income. On the identical time, Canada’s choice to cut back immigration numbers, significantly worldwide college students, has impacted a supply of latest cell and web subscribers. Lastly, Telus Digital (Telus Worldwide) plunged on decrease revenues. This had a detrimental influence on total outcomes.
Dangers
Rates of interest are decrease than they have been two years in the past, however stay elevated and won’t drop once more in Canada for a while, except there’s a materials weakening of the financial system and a surge in unemployment. An financial downturn, nonetheless, would seemingly influence gross sales of latest telephones.
On the immigration entrance, the variety of newcomers allowed into Canada will seemingly stay restricted till the federal government sees progress on its objective of creating ample reasonably priced housing accessible throughout the nation.
Telus put its dividend-growth program on maintain late final yr in an effort to stem the slide within the share value. A cloth decline in income or a pointy leap in rates of interest may power the board to trim the beneficiant distribution.
Upside
The worst of the worth wars seems to be over as carriers are as soon as once more centered on enhancing margins. As well as, Telus took Telus Digital non-public in 2025, a transfer that’s anticipated to ship important synergies within the subsequent few years. Investments in knowledge centres and the usage of AI to make operations extra environment friendly ought to assist assist progress and cut back bills.
Time to purchase?
Traders will have to be affected person, however a lot of the unhealthy information is probably going already mirrored within the share value. On the present value, the dividend supplies a yield of 8.7%. If you’re of the opinion the dividend is secure, Telus deserves to be on the radar proper now of your revenue portfolio.