The Motley Fool

1 TSX Bargain You Can Buy Today!

Dice engraved with the words buy and sell
Image source: Getty Images.

TELUS (TSX:T)(NYSE:TU) has a very diverse portfolio of services and solutions and recently reported higher revenues. This was driven by a combination of TELUS’ smart technology and security solutions, the resilient performance of TELUS’ TI University in the Philippines, increased revenues from the hyper-scaling of TELUS’  virtual care solutions, and the growing scale of TELUS Agriculture.

Deriving shareholder value

Further, TELUS’ has been deriving shareholder value from the company’s leadership in social capitalism. Even in challenging times, TELUS’ has consistently returned significant capital to shareholders, while maintaining a robust balance sheet, making generational investments in advanced broadband technologies, and advancing the company’s social purpose through community investment and philanthropy.

In the first quarter of 2020, after thoughtfully weighing the interests of TELUS’s many stakeholders, alongside the countless initiatives TELUS undertook in response to the health crisis, the company decided to defer a scheduled dividend increase.

However, in November, TELUS was able to resume the company’s multi-year dividend growth program with a seven percent increase to the company’s annualized dividend.

Consistent performance and cash flow generation

This dividend increase was a reflection of TELUS’s confidence in the company’s strong and consistent performance and cash flow generation. This was its 19th dividend increase since the establishment of the company’s first three-year program a decade ago. Notably, since 2004, TELUS has returned over $19 billion to shareholders, including $14 billion in dividends, representing approximately $15 per share.

TELUS understands the importance of dividend income to the millions of citizens who own TELUS shares, including middle-income Canadians and pensioners who rely on this form of income for a livelihood, as these investments help consumers and businesses thrive. Since 2000, TELUS has paid approximately $46 billion in total tax and spectrum remittances to the company’s federal, provincial and municipal governments.

Supporting fiscal investments

These funds support fiscal investments in roads and bridges, public education, healthcare, cultural pursuits, and national defence. In several ways, TELUS continues to sustain industry leadership relative to the company’s global peers and delivers sustainable results for the benefit of the many stakeholders it serves.

Since the end of 1999 through to 2021, TELUS generated a total shareholder return of 600 percent, 327 points higher than the return for the Canadian stock market index of 273 percent, and dramatically overshadowed the world communication services index return of 56 percent over the same period.

Moreover, over the past one, three, five, 10, and 15 years, TELUS surpassed the Canadian stock market index return by three percent, seven percent, 14 percent, 183 percent, and 175 percent, respectively.

Leading operational and financial results

Furthermore, TELUS’ leadership in customer service, network excellence, investor value creation, and social capitalism differentiates it from the company’s peers, globally. As the world looks ahead toward a period of economic and social recovery and inspired by the TELUS team’s strong performance in 2020, TELUS has established new community giving, social impact, and financial targets for the year.

Overall, TELUS looks all set to continue delivering leading operational and financial results. This should lead to a higher valuation and stock price. Long-term shareholders could handsomely benefit from income and capital appreciation.

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.

The Motley Fool recommends TELUS CORPORATION. Fool contributor Nikhil Kumar 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.