Forget TELUS Stock: A Dividend Giant to Buy Immediately Instead

It makes sense that investors would look to TELUS (TSX:T) when seeking out a dividend giant. Yet there are a few reasons you might want to look elsewhere. Telus has struggled lately as heavy debt and slower telecom revenue growth have weighed on results. So, let’s get into what’s been going on with TELUS stock and one option to consider instead.

TELUS

TELUS stock is one of Canada’s most recognized dividend stocks, but right now it is facing a combination of pressures that make it a less compelling buy compared to past years. The biggest issue is debt. TELUS stock has stacked up a large debt load after years of building out fibre networks, expanding its Telus International division, and investing in spectrum auctions that are essential, but extremely expensive.

Another challenge is Telus International, the digital customer-experience business, which was once considered a star growth asset. It has instead been a drag. TI has faced margin pressure, lower valuation multiples for tech outsourcing companies, and failed to deliver the scale of growth that TELUS stock hoped for. Meanwhile, TELUS stock is also being squeezed by slowing telecom growth in Canada. Subscriber additions have moderated across the industry, competition remains intense, and pricing power is weaker than it used to be. At the same time, even with cost-cutting initiatives, the earnings growth TELUS stock needs to support long-term dividend expansion simply isn’t there.

Finally, the stock’s valuation isn’t cheap enough to compensate for the risks. While TELUS stock has pulled back significantly from its highs, down 13% in the last year, it still trades at about 24 times earnings at writing. So, even with a 9% dividend yield, this other Canadian stock could be a better buy.

Consider BIP

Brookfield Infrastructure Partners (TSX: BIP.UN) stands out as a far stronger buy than TELUS stock right now. Its business model is built for rising demand, rising rates, and rising cash flow, three things TELUS stock simply can’t claim today.

BIP.UN owns and operates essential, hard-to-replicate assets around the world: natural gas pipelines, data centres, midstream energy systems, ports, rail, transmission lines, and increasingly digital infrastructure. These are assets with long-term contracts, inflation-linked revenue, and built-in price escalators. On top of that, Brookfield is deploying capital into some of the fastest-growing global infrastructure themes, including artificial intelligence (AI) data infrastructure, energy transition assets, and resilient utility-like platforms.

The dividend comparison makes the gap even clearer. BIP.UN may not offer a higher yield than TELUS stock, yet it holds a significantly stronger track record of sustainable dividend growth, averaging 5% to 9% annual increases for more than a decade. That’s backed by rising funds from operations (FFO) and disciplined capital allocation. TELUS stock’s dividend, by contrast, has become more strained as high debt, slow subscriber growth, and softer free cash flow have put pressure on the payout.

Bottom line

If you’re considering an investment in these two dividend stocks, TELUS stock may be worth waiting on for now. Instead, BIP offers a stable dividend, a growing one, and a clear and sustainable path towards future growth. In fact, here’s what $7,000 could bring in on the TSX today.

So, while TELUS stock may not be a dividend stock to dump forever, right now it looks like a wait-and-see stock rather than a stock to jump in on.