If you’re hunting for dividend income in Canada, TELUS (TSX:T) is hard to overlook. At a stock price of $18.64 and an annual dividend of $1.67 per share, the telecom giant is currently yielding close to 9%. That’s a meaningful income stream, and it raises a very practical question for income investors: how many shares do you actually need to hit $10,000 a year in dividends?
The math is straightforward. Divide $10,000 by the $1.67 annual dividend, and you get approximately 5,988 shares.
At today’s price of $18.64, building that position would cost you roughly $111,600. This is a significant chunk of capital, but the income it generates is equally significant.
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TELUS stands out as an income stock
TELUS is a high-yield TSX stock with improving fundamentals. That matters because a fat dividend that can’t be sustained is worse than no dividend at all.
In 2025, TELUS generated a record $2.2 billion in free cash flow. That’s an 11% jump from 2024, on top of 12% growth in 2024 and 38% growth in 2023.
That’s three consecutive years of compounding growth in free cash flow (FCF). The telecom giant is now guiding for approximately $2.45 billion in free cash flow for 2026, indicating an annual growth of 10%. Moreover, TELUS has committed to at least 10% compounded annual FCF growth through 2028, according to a company statement from December 2025.
The current quarterly dividend sits at $0.4184 per share, and TELUS has confirmed it will continue paying at that level. The cash dividend payout ratio is sitting around 70% of free cash flow on a prospective basis.
TELUS has paused its dividend growth
TELUS made a notable announcement in December 2025: it’s pausing dividend growth until its share price better reflects the company’s long-term prospects. That’s an important distinction. The dividend isn’t being cut. It’s simply not growing right now.
The Canadian dividend stock is focused on deleveraging.
- Its net debt-to-EBITDA (earnings before interest, tax, depreciation, and amortization) ratio improved from 3.9 times at the end of 2024 to 3.4 times by the end of 2025.
- The target is 3.3 times or lower by the end of 2026, and approximately three times by the end of 2027, according to the company.
TELUS is also gradually reducing its discounted dividend-reinvestment plan (DDRIP) discount, from 2% to 1.75% in early 2026, with plans to eliminate it entirely by 2028.
Once the balance sheet reaches the target leverage range and the DDRIP is fully wound down, dividend growth is expected to resume.
A strong performance in Q4
Beyond the dividend mechanics, TELUS continues to perform operationally. The company posted over one million combined mobile and fixed customer net additions in 2025, the fourth consecutive year above that threshold.
- Its postpaid mobile phone churn rate was just 0.97% for the full year, marking the 12th straight year below 1%.
- TELUS Health and TELUS Digital are both expected to deliver double-digit EBITDA growth in 2026, according to commentary from TELUS President and CEO Darren Entwistle.
- AI-enabling capabilities revenue grew 44% year over year in Q4, reaching $229 million.
- The company is targeting roughly $2 billion in revenue from AI-enabling capabilities by 2028.
The bottom line
If you want $10,000 per year in dividend income from TELUS, you need about 5,988 shares, an investment of roughly $111,600 at today’s prices. That’s not a small number. But what you’re getting in return is a nearly 9% yield backed by a telecom giant with record FCF, a credible deleveraging plan, and multiple growth engines firing across telecom, health, and AI.
The dividend isn’t growing right now, but it’s stable and well-covered. For income investors willing to be patient, TELUS looks like a stock worth putting on your watchlist and possibly your portfolio.
