Telus Corporation Continues to Be an Industry Leader

Telus Corporation (TSX:T)(NYSE:TU) is innovating in the home services industry as well as keeping up with the latest carrier and internet trends.

| More on:
The Motley Fool

Telus Corporation (TSX:T)(NYSE:TU) is one of the top telecommunications companies in the country, and 2017 will bring much of the same success that 2016 had in store.

The stock grew 11.8% last year, and it has started the new year positively, growing slightly as it put itself in a position to succeed moving forward. Telus is one of several companies looking to the future by testing the cutting-edge data technology for mobile devices known as 5G which will soon dominate the telecommunications industry.

Customers will not be happy to hear that the company is slashing the monthly savings rate for home services bundles by $2-3 per product as of March 1 due to increased costs of the product’s infrastructure. However, plenty of good will come from such a sacrifice: its networks and services will be better than ever as their speed and reliability will be improved.

Telus is shifting its attention towards home services, which currently exist in Alberta and British Columbia. The company injected $370 million into a Vancouver infrastructure, $275 million in Edmonton, and $130 million in Calgary about eight months ago. Additionally, it was the first telecommunications provider to roll out 4K TV in western Canada this past July.

Another move that spells success in the future for the company was improving Moto Z devices by updating its Android operating system to Nougat about three weeks ago. Improved features of the operating system include multi-window support, bundled notifications, and compatibility with virtual-reality platform Daydream.

Telus is a partner company of HTML500, which is an event where you can learn how to code for free. This creation will begin in Toronto on February 18 before reaching Vancouver, Montreal, Calgary, Victoria, Saskatoon, and three other cities. The move proves the company’s commitment towards technological advancement as 2,500 people of all ages will participate. More than 50% of these will be women.

The company recently added an update to its servers that allows smartphone owners to make phone calls using Wi-Fi if connected. This marks a nice alternative to using data that many top companies in North America are using. Naturally, texting and receiving calls and multimedia messages can still be used through Wi-Fi.

Philanthropy has also become a part of  Telus’s philosophy as the company recently donated $5 million to Child Health BC Initiative. This will ensure that children that are part of BC Children’s Hospital will have expanded access to health tech throughout the province. The company also donated $5,000 to create a recreation trail between Vernon and Kelowna in BC.

Investors are set to cash in on T stock as the company has an impressive dividend yield of 4.4% and a market capitalization of $25.86 billion to go along with a price-to-earnings ratio of 18.59. The stock has a consensus price target of $45.50.

It was a good end to 2016 and it’s been a good beginning to 2017 for Telus, which continues to be as relevant as ever. With the moves to advance its TV, internet, and smartphone services, the company has offerings that plenty of customers are set to enjoy, despite higher prices for its services.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Karl Utermohlen has no position in any stocks mentioned.

More on Dividend Stocks

Retirees sip their morning coffee outside.
Dividend Stocks

TFSA Investors: 3 Dividend Stocks You Haven’t Bought Yet, But Should

I get it, these dividend stocks aren't doing so hot these days. But investors should buy now and think long…

Read more »

telehealth stocks
Dividend Stocks

Retirees: 2 Dividend Stocks (With +6% Yields) for Worry-Free Passive Income

These TSX stocks offer attractive yields and have solid dividend payment histories, implying retirees can easily rely on them.

Read more »

Target. Stand out from the crowd
Dividend Stocks

2 Canadian Dividend Stocks to Buy Amid a Market Correction for Years of Passive Income

Here are two of the best Canadian dividend stocks long-term investors can buy right now to earn stable passive income…

Read more »

Caution, careful
Dividend Stocks

Top Investor-Favourite TSX Stocks to Avoid This Year

Here are two TSX stocks that could continue to underperform.

Read more »

Businessperson's Hand Putting Coin In Piggybank
Dividend Stocks

New Investors: How to Safely Make $150 in Monthly Passive Income

In this current market environment, we’re all craving safety and security. New investors looking for stable and growing passive income…

Read more »

A golden egg in a nest
Dividend Stocks

3 Stocks to Turn Five-Digit Savings Into a Six-Digit Nest Egg

If you have enough time, you can achieve decent growth goals with safe and modest growth stocks in your portfolio.

Read more »

Retirement plan
Dividend Stocks

RRSP Investors: 2 Top Oversold TSX Stocks to Buy Now and Own to Retirement

RRSP investors can now buy top TSX dividend stocks at discounted prices.

Read more »

Retirement plan
Dividend Stocks

Retiring Canadians: How is Your Readiness in 2022?

Even in a volatile market environment, Canadians can improve retirement readiness in 2022 or beyond by sacrificing some of their…

Read more »