The Motley Fool

It’s Not Too Late to Buy This Millionaire-Maker Stock

Image source: Getty Images

Some investors regret not buying Telus Corporation (TSX:T)(NYSE:TU) two decades back. The stock could have delivered huge returns and made you a millionaire.

But it’s not too late to invest in Canada’s second-largest telecommunications company and the telecom champion in Western Canada.

Investors are anticipating price growth consistent with the telecom giant’s income growth in the years ahead. Telus is also a defensive stock, so it’s practically recession-free. Profit margins will remain high given that the wireless business in Canada is an oligopoly.

Start building your wealth

Telus is one of the best stocks you can put your money in right now. The price is no longer cheap. You can wait for a pullback before taking a position. However, regardless of the timing, you can expect the dividend to grow. If you own shares today, you’ll have the new income to start building wealth.

The stock has been a great dividend play for the last 18 years. The company did a remarkable job of growing the business within that period.

Free cash flow is forecast to double over the next three years. The price of this Canadian telecom is close to the 52-week high of $51.22 and could be on the way to a new high.

The telecom’s multi-year dividend-growth model is the salient feature, and you don’t want to miss out on the robust shareholder returns. Thus, I wouldn’t mind the posh price today.

In the recent earnings season, management has avowed a 7 to 10% dividend growth over the next three years. The current dividend yield is 4.51% with a payout ratio of less than 80%. You can already project your total return to be pretty fantastic.

5 TSX Stocks Under $5

Click here to learn more!

For the future millionaire

Investing in Telus is the sweetest deal you can find on the TSX. The company has a captured market on the west coast of Canada, whose provinces are among the wealthiest in Canada.

Revenue has been steady in the last three years, with a 5.59% average growth. As to the operating income for the 12-months ending March 31, 2019, Telus posted an 8.17% increase year-over-year. Net profit margin stood at 11.15%.

Telus possesses the financial strength and will be stronger when the company switches to a more efficient 5G network. There is a commitment to keep the customers connected with the utilization of the best of technology.

Because of operational efficiency and exceptional customer service, Telus has gained powerhouse status. The customer base and subscriber connection continue to grow, which should drive profitability.

If customers are willing to stick to Telus for years, more  investors will buy and hold the stock.

Telus is heading into the future with world-class networks, a customer-first attitude, and shareholder-friendly initiatives. Meanwhile, would-be investors pressing forward to become millionaires will realize their goals.

A top-of-the-line investment should have a proven growth strategy, technology leadership, and a strong financial profile. Telus has all those qualities to make you a genuine baron in the future.

5 Canadian Growth Stocks Under $5

We are giving away a FREE copy of our "5 Small-Cap Canadian Growth Stocks Under $5" report. These are 5 Canadian stocks that we think are screaming buys today.

Get Your Free Report Today

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 Christopher Liew has no position in any of the stocks mentioned.

Two New Stock Picks Every Month!

Not to alarm you, but you’re about to miss an important event.

Iain Butler and the Stock Advisor Canada team only publish their new “buy alerts” twice a month, and only to an exclusively small group.

This is your chance to get in early on what could prove to be very special investment advice.

Enter your email address below to get started now, and join the other thousands of Canadians who have already signed up for their chance to get the market-beating advice from Stock Advisor Canada.