Telus Corp. (TSX:T)(NYSE:T) stock price roared higher in January, prompted by continued investor recognition that Telus offers an attractive dividend yield, strong growth, and a relatively safe place to go for strong and consistent long-term returns.
Let’s look at this in more detail in order to figure what to do from here. Is Telus stock a good addition to investor portfolios today?
Telus stock price continues to benefit from its attractive dividend yield
Dividend investors are always on the hunt for a stock with an attractive dividend yield. But higher is not necessarily better; investors also want safe dividends that aren’t at risk of being cut. Telus currently offers a generous dividend yield of 4.31%, and it’s a safe dividend
The company has a strong history of semi-annual dividend increases (for a seven-year compound annual growth rate of 11.4%), and has been one of the fastest-growing telecom companies.
Telus dividend is supported by the fact that Telus is Canada’s second largest telecommunications provider that provides wireline, data and wireless service. The dividend is supported by the fact that Telus enjoys a leading position in 5G, which is the fifth-generation wireless technology for digital cellular networks.
It brings faster speeds, is more responsive, and brings with it the ability to connect a lot more devices at once. Telus is the leader here because it has industry-leading 5G coverage of 70%, bringing dramatically faster speeds (up to 200 times faster than current networks), and bringing the promise of truly connected smart homes and businesses closer to reality.
Telus stock price benefited from the continued rollout of Telus Health
Telus Health, which strives to use “the power of technology to create better health experiences for Canadians. Connecting health teams, streaming workflows, and empowering patients to manage their health are just some of the ways Telus’ digital solutions promote collaboration and efficiency.”
In January, Telus made significant progress in rolling out and expanding its Health for Good initiative. This program funds Telus Mobile Health Clinics powered by Telus Health technology.
These clinics reach the most vulnerable, with the goal of addressing health issues of those experiencing homelessness across Canada and who are struggling to overcome the barriers of Canada’s medical system.
In January, Telus launched Health for Good in Edmonton, Calgary, Waterloo, and Ottawa, expanding its reach and having a positive impact for the community. This is certainly contributing to the company’s stock price performance.
Foolish bottom line
There are many reasons for investors to be positive on Telus stock. In January, I believe the stock price performance reflects this, and I believe that it was merely one good month in what will be a string of good months for its stock price.
In closing, I would like to remind foolish investors of our belief in holding great businesses for the long term. While this belief remains intact, we are also aware that sometimes, short-term stock price movements create opportunities to create wealth.
Blending this long-term focus with a keen eye for short-term stock mispricings, we can use both strategies in harmony, and our quest for financial freedom can be fulfilled.
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 Karen Thomas has no position in any of the stocks mentioned.