The TSX has several top stocks that consistently pay and increase dividends. Thanks to their resilient payouts and growing dividends, these Canadian stocks are a reliable investment for generating worry-free passive income. One of them is Telus (TSX:T), which is known for rewarding shareholders with higher dividend yields.
This Canadian communications company has consistently paid and increased its dividend for years. Moreover, it offers a high yield. Also, Telus provides visibility over future dividend growth and maintains a sustainable payout ratio. All of these attributes make Telus a compelling dividend stock for passive income.
With this background, let’s take a closer look at what will drive Telus’s dividend growth and explore how much passive income you could earn in a year if you invested in 100 shares of this high-yield TSX stock.
Telus has paid $23 billion in dividends
Telus has a history of consistently paying and increasing dividends under its multi-year dividend growth program established in 2011. While it has increased its dividend multiple times, this communications service provider has returned more than $28 billion to shareholders through dividends and share purchases since 2004. This includes over $23 billion in dividends and $5.2 billion in share buybacks.
Furthermore, Telus has extended its dividend growth program for the fifth time, targeting 3% to 8% annual dividend growth through 2028. T stock currently pays a quarterly dividend of $0.416 per share, translating into an attractive yield of about 7.7% based on its closing price of $21.64 on October 7.
What could drive Telus’s dividend payouts?
Telus’s high yield is supported by its ability to deliver profitable growth and a sustainable payout ratio of 60–75% of free cash flow. This provides a healthy balance between rewarding shareholders and reinvesting in the business.
Telus is also likely to benefit from its diversified and growing portfolio of services. Its leading bundled offerings across mobile, home, and fibre connectivity continue to attract and retain customers, supported by the ongoing expansion of TELUS PureFibre to homes and businesses across Canada. This robust network infrastructure has helped the company maintain an impressively low postpaid mobile churn rate of just 0.9%, reflecting strong customer loyalty.
Beyond its core communications business, Telus is also benefiting from its strategic diversification. Telus Health, in particular, has become one of its key growth segments. The company’s investment in AI-driven smart home solutions, next-generation healthcare, and affordable security and entertainment services has further strengthened its competitive position.
At the same time, Telus continues to prioritize operational efficiency, debt reduction, and the divestiture of non-core assets. These moves strengthen its balance sheet and earnings. Looking ahead, as capital expenditures begin to moderate following years of heavy investment in network expansion, Telus expects free cash flow to grow significantly, creating additional room for dividend increases.
Here’s how much passive income you’d get
Telus is a dependable dividend stock to buy and hold for the long term. The company’s commitment to rewarding shareholders through regular dividend increases and a high yield makes it a solid choice for building steady passive income. If you invested in 100 shares of this high-yield TSX stock, you’d get $166.40 annually in passive income.
| Company | Recent Price | Number of Shares | Dividend | Total Payouts | Frequency |
| Telus | $21.64 | 100 | $0.416 | $41.6 | Quarterly |
