You cannot predict stock market returns with certainty. Hence, forecasts are in a range with no exact time frame. The forecast is also subject to change depending on recent developments. At present, Telus (TSX: T) is offering a quarterly dividend of $0.4023, which could increase to $0.4164 in July if the company continues its trend of semi-annual growth of 3.5%.
The past data does not guarantee future returns. However, it helps you build a base to build expectations of future returns and monitor the progress of the stock’s performance. There may be years when the stock outperforms and years when it underperforms, but it averages out in the long term. The range considers this deviation from the average to help you build realistic expectations.
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How to earn $3,969 in yearly dividends from Telus stock
Assuming Telus retains a $0.4164 quarterly dividend per share, the annual dividend could come to $1.6656. You will have to buy 2,383 shares of Telus to earn $3,969 in yearly dividends.
Telus shares are trading at $20.86. Buying 2,383 shares will require you to invest $49,709. Those nearing retirement could consider this option as Telus can grow the passive income above inflation and keep paying even in a weak economy.
Since Telus stock is trading at its nine-year low, your $49,709 investment will be relatively intact with a 5-10% movement up and down. The upside potential is more as the company monetizes the 5G trend.
How to earn $3,969 in yearly dividends without investing $50,000
The above option is ideal for those with a significant retirement pool and an immediate need for dividend income. You can still earn $3,969 from Telus shares even if you don’t have $50,000 to invest. You have to stay invested and let your money earn for itself.
Telus offers a dividend-reinvestment plan (DRIP) that reinvests the dividend money to buy more shares of Telus. Since you are buying shares from the company itself, no brokerage fees apply. It is suggested to invest through registered savings accounts that allow your money to grow tax-free. This way, you save on dividend tax, which compounds to a significant sum later.
You can consider two investment approaches:
- Invest a lump sum like $5,000 or $7,000 in Telus’s DRIP and get the advantage of buying the dip and locking in a 7.75% dividend yield.
- Invest a small amount every month or every year and accelerate the effect of compounding. In a few years, you can accumulate enough DRIP shares and new shares that pay a yearly dividend of $3,969 or closer.
Using the benefit of compounding through DRIP
I have built a rough calculation wherein you invest $5,000 in 2025 and $2,500 every year from 2026 onwards. The assumption is that Telus will slow its dividend growth rate to 6%, and its share price will rise to $25, $30, and $35 as it monetizes the 5G infrastructure.
An investment of a little over $5,000 can buy you 240 shares of Telus at $20.86 per share. Since the second-quarter dividend is already paid in 2025, the 240 shares could give you $199.77 in dividends at a $0.4164 dividend per share per quarter.
| Telus Stock Price | Year | Annual Investment | Telus DRIP Shares + New shares | Telus Share count | Telus Dividend per share (6% CAGR) | Total dividend |
| $20.86 | 2025 | $5,000.00 | 240.0 | $1.6374 | $199.87 | |
| $25.00 | 2026 | $2,699.87 | 108.0 | 348.0 | $1.7356 | $604.00 |
| $25.00 | 2027 | $3,104.00 | 124.2 | 472.2 | $1.8398 | $868.66 |
| $30.00 | 2028 | $3,368.66 | 112.3 | 584.4 | $1.9502 | $1,139.76 |
| $30.00 | 2029 | $3,639.76 | 121.3 | 705.8 | $2.0672 | $1,458.95 |
| $30.00 | 2030 | $3,958.95 | 132.0 | 837.7 | $2.1912 | $1,835.65 |
| $35.00 | 2031 | $4,335.65 | 123.9 | 961.6 | $2.3227 | $2,233.51 |
| $35.00 | 2032 | $4,733.51 | 135.2 | 1096.9 | $2.4620 | $2,700.50 |
| $35.00 | 2033 | $5,200.50 | 148.6 | 1245.4 | $2.6098 | $3,250.30 |
| $35.00 | 2034 | $5,750.30 | 164.3 | 1409.7 | $2.7664 | $3,899.82 |
Telus DRIP will reinvest the dividend amount, and a $2,500 annual investment can help you buy and accumulate Telus stocks and achieve the goal of a $3,969 yearly dividend in a little over nine years. Over the years, your investment would be $27,500 and earn $3,900 in passive income.
This is a rough calculation where the DRIP share purchase is happening annually. In reality, DRIP will buy shares every quarter.
