When most people think about investing in tech, they picture flashy growth stocks with zero dividends and sky-high volatility. But what if you could get steady income and exposure to technology in one package? That’s exactly why I’d consider putting my entire Tax-Free Savings Account (TFSA) into Telus (TSX:T). It’s not just a telecom, it’s evolving into a full-blown tech dividend stock. And the fact that it pays a yield above 7.5% makes it one of the most attractive income plays on the TSX right now.
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About Telus
Telus has become a household name for mobile, internet, and home services. But under the surface, it’s growing into something more. Alongside its core telecom business, it’s pushing hard into digital health, cybersecurity, and global IT services. These areas are fast-growing and give Telus a tech edge that separates it from traditional telecoms.
Let’s start with the numbers. In its most recent earnings report for the first quarter (Q1) of 2025, Telus posted operating revenue of $5.06 billion, up nearly 4% year over year. Net income jumped to $321 million, a major increase from $127 million the year before. The dividend stock added 168,000 new mobile phone customers and 50,000 new internet subscribers in the quarter, suggesting that Canadians are still turning to Telus for core services even as household budgets tighten.
Earning income
One of the most exciting aspects of Telus is the dividend. It currently offers a yield of approximately 7.58%, based on a recent share price of around $22. That’s rare in the tech world. Most technology companies don’t pay dividends at all. Telus, however, not only pays one, but it increases it. The dividend stock raised its dividend by 7% earlier this year, part of a long-term plan to grow its payout by between 7% and 10% annually through 2028. For income-focused investors, that’s music to the ears. And right now, a $50,000 investment would bring in $3,774 in annual income!
What makes this even more attractive is the potential of Telus Health. This division focuses on virtual care, electronic medical records, and digital pharmacy services. In Q1, it posted a 12% increase in revenue and a 30% jump in earnings before interest, taxes, depreciation, and amortization compared to the previous year. As more of the healthcare system moves online, this part of the business could see even faster growth. It’s a quiet but powerful growth engine hiding inside a dividend stock.
| COMPANY | RECENT PRICE | SHARES | DIVIDEND | TOTAL PAYOUT | FREQUENCY | INVESTMENT TOTAL |
|---|---|---|---|---|---|---|
| T | $22.12 | 2,260 | $1.67 | $3,774.20 | Quarterly | $49,991.20 |
Considerations
Of course, there are always risks. Telus has a relatively high payout ratio, above 100% based on earnings, though its free cash flow better supports the dividend. Management expects free cash flow to hit $2.15 billion this year, which should be more than enough to fund the payout and continue investing in infrastructure and innovation. But investors should be aware that rising interest rates and competition in telecom services could pressure margins in the short term.
Still, the combination of a tech-forward strategy and dependable monthly income is hard to beat. For someone using a TFSA, this kind of investment makes a lot of sense. You don’t pay tax on the dividend income. You can reinvest to compound returns. And you have exposure to two major investing trends: reliable telecom infrastructure and growing digital services.
Bottom line
Putting your entire TFSA into one stock might not be the right move for everyone. But if you’re comfortable with Telus’s business model and believe in its long-term strategy, it offers something rare on the TSX. It’s a dividend stock with serious tech ambitions. It brings steady cash flow with a side of growth, and in today’s market, that combination is hard to find.
So, if you’re sitting on unused TFSA room and looking for a mix of income and innovation, Telus deserves a close look. It may not be flashy, but sometimes the smartest moves are the ones that quietly pay you while you sleep.
