In this article, we will take a look at some of the best dividend stocks from the telecom sector.Telecom stocks gained roughly 11% in 2024, though the sector’s performance lagged behind the broader market, with the S&P 500 climbing about 25% and the NASDAQ advancing close to 30%.Over the past century, the telecom industry has gone through periods of stronger revenue expansion, first fueled by wireline services and later by the rise of mobile connectivity and broadband internet. Outside of these high-growth ...

Core Viewpoint - TELUS International has filed its management information circular in connection with a special meeting of shareholders to discuss a proposed arrangement with TELUS Corporation [1] Group 1 - The special meeting of shareholders is scheduled to be held virtually on October 27, 2025, at 9:00 a.m. Vancouver time [1] - The arrangement under consideration involves TELUS Corporation, which is listed on both TSX and NYSE [1]

TELUS FY Conference Summary Company Overview - **Company**: TELUS (NYSE: TU) - **Date of Conference**: September 09, 2025 Key Industry Insights - The telecommunications industry is facing pressure from shareholders regarding growth and debt levels, prompting companies like TELUS to reassess their strategies [3][4] - TELUS has maintained a consistent strategy focused on building superior networks, customer service, and relevant products [4][5] Core Strategies and Execution - **Network Development**: TELUS emphasizes the importance of fiber technology for internet services, having been an early adopter [4] - **Customer Service**: The company has led in customer service and churn management for over 15 years, leveraging AI and digitization to enhance service delivery [6][7] - **Product Relevance**: TELUS is focused on evolving its product offerings to remain relevant, particularly in health and technology sectors [6][7] Revenue Outlook - **Wireless Segment**: The wireless pricing environment is competitive but stable, with TELUS opting not to engage in unprofitable promotions [9][10][11] - **Wireline Segment**: Fixed data line revenue has shown a 3% growth, attributed to the bundling of services and strong traction in fiber and digital services [14][15] Capital Expenditure and Growth - TELUS plans to maintain a capital intensity of around 10%, with significant investments in Ontario and Quebec [19][20] - The company is exploring third-party partnerships for fiber deployment to manage costs effectively [21][22] Market Expansion - TELUS is expanding its footprint in Eastern Canada, focusing on small and medium-sized businesses (SMBs) and ensuring high service levels [17][18][26] - The company aims to avoid overbuilding and will assess market opportunities based on population density and service needs [23][24] Cost Management and Profitability - TELUS is implementing AI-driven tools to reduce churn and improve operational efficiency, which has already shown a reduction in churn rates [28][29] - The company is focused on maintaining a strong cost structure while expanding its service offerings [27][28] Financial Targets and Asset Monetization - TELUS aims to achieve a leverage ratio of 3 times by 2027 through operational execution, free cash flow generation, and monetization of non-core assets [33][34] - The company is in the early stages of monetizing its copper assets, with a target of $500 million in the medium term [37][39] Real Estate and Tower Agreements - TELUS is exploring monetization opportunities in real estate and has plans for a potential REIT by 2026 [41][42] - The company has monetized 49% of its tower assets and is open to further collaboration with other operators [43][44] Health Sector Growth - TELUS Health is experiencing double-digit growth, driven by synergies from acquisitions and international expansion [50][51] - The company is looking for strategic partnerships to enhance its health services and maximize valuation [52][53] TELUS Digital Integration - The integration of TELUS Digital aims to reduce costs and enhance AI capabilities within the organization [55][56] Conclusion - TELUS is strategically positioned to navigate industry challenges through a focus on network development, customer service, and innovative product offerings while managing costs and expanding its market presence. The company is optimistic about future growth in both its telecommunications and health sectors.

Core Insights - TELUS Corporation has reached a definitive agreement to acquire all outstanding shares of TELUS International, valuing each share at $4.50, totaling approximately $539 million [1][9] - The acquisition is expected to enhance TELUS's digital customer experience, accelerate AI capabilities, and drive SaaS transformation across its core businesses [3][9] - The deal has been unanimously approved by TELUS Digital's board and is supported by EQT, the largest minority shareholder [4][5] Financial Details - Shareholders will have three payment options: $4.50 in cash, 0.273 of a TELUS common share, or a combination of $2.25 in cash and 0.136 of a TELUS share, with no more than 25% of the total consideration paid in shares [2] - The agreed price represents a 52% premium over TELUS Digital's closing share price of $2.96 on June 11, 2025 [2] - The transaction values TELUS Digital at $2.9 billion and is subject to shareholder, court, and regulatory approvals [5] Strategic Implications - The acquisition aligns with TELUS's broader strategy to strengthen its position in digital transformation, AI, and global innovation across multiple industries [3][5] - TELUS Digital's operating revenues increased by 8% in Q2 2025, aided by a stronger U.S. dollar and euro, while adjusted EBITDA decreased by 25.8% year-over-year [6] - The integration aims to enhance TELUS's capabilities in fintech, gaming, media, and healthcare, ensuring substantial value creation for shareholders [3][5] Approval Process - A special shareholder meeting is scheduled for October 27, 2025, with TELUS Digital shareholders of record on September 12 eligible to vote [5] - If approved, the transaction is expected to close in Q4 2025, after which TELUS Digital's shares will be delisted [5][9]

Group 1 - The Conservative Income Portfolio targets high-value stocks with significant margins of safety and aims to reduce volatility through well-priced options [1] - The Enhanced Equity Income Solutions Portfolio is designed to generate yields of 7-9% while minimizing volatility [1] - TELUS (TSX: T:CA) was rated as a "hold" based on decent results but with factors that influenced the rating [1] Group 2 - Trapping Value is a team of analysts with over 40 years of combined experience in generating options income while focusing on capital preservation [2] - The Conservative Income Portfolio is run in partnership with Preferred Stock Trader and features two income-generating portfolios along with a bond ladder [2]

Core Insights - TELUS Corporation reported second-quarter 2025 adjusted earnings per share (EPS) of C$0.22, a decrease from C$0.25 in the same period last year [1] - Total operating revenues increased by 2% year over year to C$5,082 million, driven by strong revenue growth across all segments [1] - The company achieved total customer growth of 198,000 in the second quarter, with 167,000 additions in mobile and connected devices, and 31,000 in fixed customers [2] Financial Performance - TELUS' operating revenues from contracts with customers were C$5,031 million, reflecting a 3% year-over-year increase [1] - The company declared a quarterly dividend of C$0.4163 per share, a 7% increase from the previous year's C$0.3891 [2] - Adjusted EBITDA increased modestly by 0.8% year over year to C$1,812 million [18] Segment Results - TTech revenues rose 1% year over year to C$3,848 million, with operating revenues from contracts with customers increasing to C$3,793 million [5] - Mobile network revenues decreased by 1% to C$1,723 million, attributed to a decline in mobile phone ARPU [6] - Fixed data service revenues increased by 3% to C$1,193 million, supported by an expanding subscriber base [9] Strategic Developments - TELUS signed a definitive agreement with La Caisse to sell a 49.9% stake in Terrion for approximately $1.26 billion, valuing the operator at over $2.5 billion [3] - The proceeds from the deal will be used to accelerate debt reduction efforts, aiming for a net debt-to-EBITDA ratio of 3.0 by 2027 [3] Cash Flow and Guidance - Cash generated from operating activities was C$1,166 million, down from C$1,388 million in the previous year, while free cash flow increased by 11% to C$535 million [19] - TELUS reaffirmed its 2025 financial targets, expecting 2-4% growth in TTech operating revenues and 3-5% growth in adjusted EBITDA [20]

Financial Data and Key Metrics Changes - TELUS achieved total mobile and fixed customer growth of 198,000 in Q2 2025, driven by mobile phone and connected device additions of 167,000 and fixed customer additions of 31,000 [7][8] - Postpaid mobile phone churn remained at 0.9%, consistent with Q2 of the previous year, marking the twelfth consecutive year below the 1% level [8] - TTEC EBITDA growth, including TELUS Health, was up 4%, consistent with Q1 results [8][19] - Free cash flow increased by 11% year-over-year to CAD 535 million, driven by higher EBITDA and lower capital expenditures [23][25] - Adjusted net income was CAD 342 million, with an EPS of CAD 0.22 [22] Business Line Data and Key Metrics Changes - TELUS Health reported an extraordinary adjusted EBITDA growth of 1629%, with operating revenue also reflecting significant growth [10][19] - Fixed data services revenue grew by 3% year-over-year, marking the eighteenth consecutive quarter of positive growth [19] - Mobile network revenue experienced a slight decline due to lower mobile phone ARPU, which fell by 3.3% [18][19] Market Data and Key Metrics Changes - The competitive landscape in the mobile sector remains challenging, with ongoing pressures on ARPU due to market conditions [18][19] - TELUS is the only company in the industry to deliver positive net additions in the wireline sector, highlighting its competitive advantage [9] Company Strategy and Development Direction - TELUS announced a CAD 2 billion investment to expand broadband services in Ontario and Quebec, reflecting its commitment to enhancing connectivity [5][6] - The company is focusing on bundling wireless and wireline broadband services to differentiate itself from competitors [6][10] - TELUS is pursuing a strategy of monetizing its tower infrastructure through the establishment of Terion, which will build new towers and enhance financial flexibility [13][26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the Canadian market, emphasizing the importance of private investment and innovation [6][7] - The company anticipates continued improvements in its leverage ratio, aiming for a net debt to EBITDA ratio of three times by 2027 [24][26] - Management highlighted the importance of AI and digital solutions in driving operational efficiencies and enhancing customer experiences [82][83] Other Important Information - TELUS Friendly Future Foundation raised over CAD 2.6 million to support student bursaries, demonstrating the company's commitment to community engagement [16] - The company is actively pursuing partnerships to enhance its service offerings and expand its market reach [14][76] Q&A Session Summary Question: Strategic shift regarding the proposed privatization of TIAXT - Management clarified that the move is related to supporting deleveraging goals and does not indicate a change in monetization strategies for other tech ventures [31][32] Question: Financial details on the towers and EBITDA - Management did not disclose specific EBITDA figures but confirmed that all towers will operate at fair market value rent, ensuring transparency [34] Question: Long-term impact of tower deals and colocation opportunities - Management indicated that demand for data continues to rise, and the partnership with Terion will support cash flow positivity through tower construction and colocation [40] Question: Market pricing discipline and sustainability - Management expressed cautious optimism about the current pricing trends, noting that irrational pricing cannot be sustained in the long term [41][42] Question: Sustainability of fixed data growth - Management highlighted the diversity of contributions to fixed data growth and expressed confidence in the sustainability of this growth moving forward [68] Question: Update on deleveraging drivers, particularly real estate - Management discussed ongoing efforts to rationalize real estate and the potential for significant monetization opportunities in the future [72][73] Question: Role of traditional telcos in the AI ecosystem - Management identified three key areas for growth in the AI ecosystem, including leveraging existing infrastructure and enhancing internal operations through AI [81][82]

Financial Data and Key Metrics Changes - TELUS achieved total mobile and fixed customer growth of 198,000 in Q2 2025, driven by mobile phone and connected device additions of 167,000 and fixed customer additions of 31,000 [5][6] - TTEC EBITDA growth, including TELUS Health, was up 4%, consistent with Q1 results, while mobile phone net additions were 55,000 and connected device net additions were 112,000 [6][7] - Free cash flow increased by CAD 535 million, an 11% rise compared to the same period last year, driven by higher EBITDA and lower capital expenditures [21][23] Business Line Data and Key Metrics Changes - TELUS Health reported an extraordinary growth in operating revenue and adjusted EBITDA of 1629% respectively, with a significant increase in global lives covered to almost 160 million [8][19] - Fixed data services revenue grew by 3%, marking the eighteenth consecutive quarter of positive growth, supported by subscriber ARPU growth in Internet and security services [18][19] - Mobile network revenue saw a slight decline due to lower mobile phone ARPU, which decreased by 3.3% amid competitive pressures [17] Market Data and Key Metrics Changes - The Canadian market is showing signs of stabilization, with improvements in ARPU trends across new activations and customer renewals [17][39] - TELUS is committed to expanding broadband services in Ontario and Quebec with a CAD 2 billion investment, reflecting confidence in the Canadian market [4][5] Company Strategy and Development Direction - TELUS is focusing on bundling wireless and wireline broadband services, aiming to differentiate itself through innovative offerings such as AI-driven smart home solutions and next-generation healthcare [4][5] - The company is pursuing a strategy of monetizing its tower infrastructure through a partnership with Akeis, which will enhance financial flexibility and support balance sheet deleveraging [11][24] - TELUS is leveraging its existing assets for new opportunities, particularly in AI and data centers, to drive long-term value creation [79][99] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the operating environment, noting that the market is transitioning from irrational pricing to more sustainable pricing models [39][41] - The company anticipates continued improvements in its leverage ratio, aiming for a net debt to EBITDA ratio of three times by 2027 [22][24] - Management emphasized the importance of customer experience and product differentiation as key drivers for future growth [44][46] Other Important Information - TELUS Friendly Future Foundation raised over CAD 2.6 million to support student bursaries, reflecting the company's commitment to community support [15] - The company is actively working on real estate rationalization and copper monetization, with significant opportunities identified in these areas [71][73] Q&A Session Summary Question: Strategic shift regarding the proposed privatization of TIAXT - Management clarified that the move is related to supporting deleveraging goals and should not be interpreted as a change in monetization strategy for other tech ventures [28][29] Question: Financial details on the tower entity - Management did not disclose specific EBITDA figures but confirmed that all towers will operate at fair market value rent, ensuring positive cash flow [30][31] Question: Long-term impact of tower deal and deployment of more towers - The demand for data is increasing, and the partnership with Terion will allow for continued tower construction and co-location opportunities, enhancing cash flow [36][38] Question: Sustainability of recent pricing improvements in wireless - Management noted that while certainty is not guaranteed, the current trend is encouraging, and the market must shift from irrational pricing to rational pricing for sustainability [39][41] Question: Update on fixed data growth sustainability - Management expressed confidence in the sustainability of fixed data growth, supported by diverse service offerings and strong customer experience [66][68] Question: Plans for new data center construction - TELUS has already invested in world-class data centers and is leveraging these assets for AI initiatives, minimizing the need for additional capital investment [97][99]

Financial Performance - TELUS reported consolidated operating revenues of $5 billion, a 3% year-over-year increase[35] - Adjusted EBITDA reached $1.8 billion, up 1% year-over-year[35] - Free cash flow increased by 11% year-over-year to $535 million[35] - Capital expenditures (excluding real estate) decreased by 2% year-over-year to $657 million[35] Customer Growth & Operations - Total customer additions were 198,000, with industry-leading postpaid mobile phone churn of 0.90%[8] - Mobile phone net additions were +55,000[10] - Connected device net additions were +112,000[10] - Internet net additions were +27,000[13] - TV net additions were +12,000[13] TELUS Health - TELUS Health external revenues grew by 16% year-over-year to $517 million[27] - TELUS Health Adjusted EBITDA increased by 29% year-over-year to $91 million[27] - TELUS Health covered 157.1 million lives, including 79.3 million added due to the Workplace Options acquisition and a change in definition[27] Strategic Initiatives - Strategic infrastructure expansion includes a $2 billion investment to expand PureFibre in Ontario and Quebec[8] - A definitive agreement was announced with La Caisse, who will acquire a 49.9% interest in Terrion for $1.26 billion[49] - Terrion is valued at over $2.5 billion and is expected to reduce TELUS' net debt by approximately $1.26 billion[49]

Company Performance - Telus reported quarterly earnings of $0.16 per share, missing the Zacks Consensus Estimate of $0.17 per share, and down from $0.18 per share a year ago, representing an earnings surprise of -5.88% [1] - The company posted revenues of $3.67 billion for the quarter ended June 2025, which was 0.17% below the Zacks Consensus Estimate and slightly up from $3.64 billion year-over-year [2] - Over the last four quarters, Telus has surpassed consensus EPS estimates three times and topped revenue estimates two times [2] Future Outlook - The immediate price movement of Telus shares will depend on management's commentary during the earnings call and the earnings outlook for the coming quarters [3][4] - The current consensus EPS estimate for the next quarter is $0.20 on revenues of $3.83 billion, and for the current fiscal year, it is $0.76 on revenues of $15.1 billion [7] - The estimate revisions trend for Telus was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold), indicating expected performance in line with the market [6] Industry Context - The Diversified Communication Services industry, to which Telus belongs, is currently in the top 17% of over 250 Zacks industries, suggesting a favorable outlook compared to the bottom 50% [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]