You’ve probably heard the saying, “Don’t just work for your money, make your money work for you.” One of the most practical ways Canadians can do this is by investing in dividend stocks. These stocks not only have the potential to grow in value over time but also pay you cash on a regular basis just for holding them. If you’re looking to build a steady stream of passive income, then figuring out how many shares you need to earn, say, $1,000 per year, is a good place to start. And when it comes to dependable Canadian dividend payers, TELUS (TSX: T) is a popular choice.
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About TELUS
TELUS is one of the big three telecommunications providers in Canada. It offers internet, phone, TV, and wireless services, and it also has a growing presence in healthcare and digital solutions. That combination of stable infrastructure and forward-looking investment in tech has helped TELUS stay relevant and competitive. It’s also a company that has long attracted income-seeking investors because of its reliable and generous dividend.
As of writing, TELUS shares are trading at around $22.42. The dividend stock pays a quarterly dividend of $0.445, or $1.78 annually. That gives it a dividend yield of about 7.94%, which is very attractive. That’s the power of dividend investing: not only do you have the potential for stock appreciation over time, but you also get paid along the way.
So, how many shares of TELUS would you need to earn $1,000 in dividends per year? As you can see, as of writing, it would come to about $13,500 to create $1,000 in annual income. This doesn’t include trading fees or taxes if you’re buying in a non-registered account, but it gives you a clear idea of the scale of investment required.
| COMPANY | RECENT PRICE | NUMBER OF SHARES | ANNUAL DIVIDEND PER SHARE | TOTAL ANNUAL PAYOUT | FREQUENCY | TOTAL INVESTMENT |
|---|---|---|---|---|---|---|
| TELUS (T.TO) | $22.70 | 599 | $1.67 | $1,000.33 | Quarterly | $13,597.30 |
Is it worth it?
Now, let’s take a step back and look at TELUS’s most recent earnings to make sure the dividend is sustainable. In the first quarter of 2025, TELUS reported operating revenues of $5.1 billion, up 3% from the same period in 2024. Net income jumped to $301 million from $140 million the year before, and earnings per share rose (EPS) to $0.21 from $0.09. The dividend stock also saw solid subscriber growth, with 37,000 new mobile phone customers and 34,000 new internet customers.
That growth is important because it supports the dividend. TELUS has made it clear that it prioritizes returning value to shareholders. It has a multi-year dividend-growth program that has increased its payout steadily over the past decade. Even with the pressures of building out 5G networks and expanding fibre-optic infrastructure, TELUS continued to deliver on that promise.
Some investors might be wary of telecom stocks due to high levels of debt. That’s a fair concern, especially with interest rates staying elevated. However, TELUS has managed its balance sheet carefully and has strong cash flow from operations to cover its obligations. In fact, in Q1 2025, the company generated free cash flow of $360 million, which helps fund both dividends and capital spending.
Bottom line
At the end of the day, earning $1,000 a year from TELUS dividends is totally achievable. With a modest upfront investment and a long-term mindset, this kind of passive income is not just a dream; it’s a plan. Whether you’re investing for retirement, a side income stream, or just trying to grow your wealth, TELUS offers a blend of income, stability, and growth that’s hard to ignore.
