If you happen to’re trying to find dividend earnings in Canada, TELUS (TSX:T) is tough to miss. At a inventory worth of $18.64 and an annual dividend of $1.67 per share, the telecom large is presently yielding near 9%. That’s a significant earnings stream, and it raises a really sensible query for earnings buyers: what number of shares do you truly have to hit $10,000 a yr in dividends?
The maths is simple. Divide $10,000 by the $1.67 annual dividend, and also you get roughly 5,988 shares.
At at this time’s worth of $18.64, constructing that place would price you roughly $111,600. This can be a important chunk of capital, however the earnings it generates is equally important.
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TELUS stands out as an earnings inventory
TELUS is a high-yield TSX inventory with bettering fundamentals. That issues as a result of a fats dividend that may’t be sustained is worse than no dividend in any respect.
In 2025, TELUS generated a report $2.2 billion in free money circulate. That’s an 11% soar from 2024, on prime of 12% progress in 2024 and 38% progress in 2023.
That’s three consecutive years of compounding progress in free money circulate (FCF). The telecom large is now guiding for about $2.45 billion in free money circulate for 2026, indicating an annual progress of 10%. Furthermore, TELUS has dedicated to not less than 10% compounded annual FCF progress via 2028, in response to an organization assertion from December 2025.
The present quarterly dividend sits at $0.4184 per share, and TELUS has confirmed it’ll proceed paying at that stage. The money dividend payout ratio is sitting round 70% of free money circulate on a potential foundation.
TELUS has paused its dividend progress
TELUS made a notable announcement in December 2025: it’s pausing dividend progress till its share worth higher displays the corporate’s long-term prospects. That’s an vital distinction. The dividend isn’t being reduce. It’s merely not rising proper now.
The Canadian dividend inventory is concentrated on deleveraging.
- Its web debt-to-EBITDA (earnings earlier than curiosity, tax, depreciation, and amortization) ratio improved from 3.9 occasions on the finish of 2024 to three.4 occasions by the top of 2025.
- The goal is 3.3 occasions or decrease by the top of 2026, and roughly thrice by the top of 2027, in response to the corporate.
TELUS can also be regularly decreasing its discounted dividend-reinvestment plan (DDRIP) low cost, from 2% to 1.75% in early 2026, with plans to eradicate it solely by 2028.
As soon as the steadiness sheet reaches the goal leverage vary and the DDRIP is totally wound down, dividend progress is anticipated to renew.
A powerful efficiency in This fall
Past the dividend mechanics, TELUS continues to carry out operationally. The corporate posted over a million mixed cellular and glued buyer web additions in 2025, the fourth consecutive yr above that threshold.
- Its postpaid cell phone churn charge was simply 0.97% for the total yr, marking the twelfth straight yr under 1%.
- TELUS Well being and TELUS Digital are each anticipated to ship double-digit EBITDA progress in 2026, in response to commentary from TELUS President and CEO Darren Entwistle.
- AI-enabling capabilities income grew 44% yr over yr in This fall, reaching $229 million.
- The corporate is focusing on roughly $2 billion in income from AI-enabling capabilities by 2028.
The underside line
If you’d like $10,000 per yr in dividend earnings from TELUS, you want about 5,988 shares, an funding of roughly $111,600 at at this time’s costs. That’s not a small quantity. However what you’re getting in return is a virtually 9% yield backed by a telecom large with report FCF, a reputable deleveraging plan, and a number of progress engines firing throughout telecom, well being, and AI.
The dividend isn’t rising proper now, but it surely’s secure and well-covered. For earnings buyers prepared to be affected person, TELUS appears like a inventory value placing in your watchlist and probably your portfolio.