Shopping for and holding high-yield TSX dividend shares can improve the earnings potential of your portfolio. Nevertheless, traders ought to train warning, as in some instances an unusually excessive yield might sign underlying enterprise pressures or an unsustainable payout coverage fairly than a simple earnings alternative. In opposition to this backdrop, one TSX inventory at the moment attracting consideration is Telus (TSX:T), which presents a dividend yield of roughly 9.1%.
Traditionally, Telus has proven a robust dedication to returning capital to shareholders. Since 2004, the corporate has distributed roughly $30 billion by means of dividends and share repurchases. Of that complete, about $25 billion was paid as dividends.
Regardless of this stable monitor document of dividend funds, latest developments have launched uncertainty over future payouts. In December of final yr, Telus introduced a pause in its dividend progress program. Though the corporate maintained its quarterly dividend at $0.4184 per share, the suspension of additional will increase marks a shift from its prior sample of standard dividend progress. The absence of dividend progress raises questions concerning the sustainability of future payouts.
Supply: Getty Photos
What’s forward for Telus’s payouts?
Telus’s transfer to pause its dividend progress program is aimed toward accelerating balance-sheet deleveraging, bettering monetary flexibility, and strengthening the muse for sustainable long-term progress. By moderating capital returns, Telus is strengthening its capability to navigate a aggressive working surroundings.
The broader backdrop for Canada’s telecommunications sector stays difficult. Intensifying competitors has put pricing beneath stress and compressed {industry} margins. Nonetheless, Telus’s in depth wi-fi infrastructure, increasing PureFibre community, and concentrate on worthwhile buyer progress place it to capitalize on demand developments in 2026 and past and preserve its payouts.
Telus delivered 1.1 million internet buyer additions throughout cell and glued in 2025. This complete included document related system internet additions of 716,000, cell phone internet additions of 207,000, and glued internet additions of 158,000. The fixed-line efficiency marked the corporate’s sixteenth consecutive yr of constructive wireline internet additions. These outcomes replicate the power of Telus’s bundled cell and residential choices, the aggressive benefits of its fibre community footprint, and the standard of its 5G wi-fi platform.
Buyer loyalty stays a key differentiator for Telus. It reported industry-leading postpaid cell phone churn of 0.97% for the complete yr 2025, extending its streak to 12 consecutive years under the 1% threshold.
Additional, Telus generated document free money circulation of $2.2 billion in 2025, an 11% year-over-year improve. Administration expects double-digit free money circulation progress by means of 2028, strengthening the corporate’s capability to fund capital investments, scale back leverage, and assist shareholder returns.
Primarily based on the present quarterly dividend, Telus’s money dividend payout ratio stands at roughly 70%. Administration has indicated the payout ratio may keep at related ranges within the close to future.
Is Telus inventory a purchase for its 9.1% yield?
Telus’s portfolio of high-quality telecommunications belongings, an increasing fibre community, and regular subscriber progress augur effectively for progress. As well as, administration has prioritized deleveraging, positioning the stability sheet for gradual enchancment. Capital expenditures are anticipated to average within the coming intervals, which ought to improve earnings and free money circulation era, thereby supporting dividend sustainability.
Enhancing free money circulation, mixed with ongoing asset monetization initiatives, is anticipated to speed up debt discount and additional strengthen the corporate’s monetary place. Nevertheless, the pause in dividend progress, the aggressive telecom surroundings, and the ultra-high yield of 9.1% warrants warning.
In brief, in the event you’re primarily investing for earnings and are okay with some average danger and no dividend progress within the close to future, Telus is likely to be an affordable inventory to carry or purchase. Nevertheless, in the event you favor safer investments with steadily growing dividends, it might be higher to attend till the corporate considerably reduces its debt and resumes constant dividend progress earlier than shopping for.