Everybody loves a good income stock. What we want is a reliable, growing, consistent dividend that we can count on. And sometimes it’s not that easy to get that. I’m thinking about Telus Corporation (TSX:T). Who would have thought, years ago that Telus would be in the position it’s in today? The telecom industry is in disarray, with Telus stock struggling to maintain margins and profitability, and saddled with debt. Telus has sure had to adjust and pivot its way back to growth. And while it’s doing a fine job, the uncertainty is still there, with high debt loads and its growth path unproven and unclear to investors.
Personally, I have believed that this turmoil has created a good opportunity to buy Telus stock. I like its plan to resume cash flow growth, its high growth businesses like Telus Health, and its still dominant place in the telecom industry. I think Telus will successfully pivot back toward dividend reliability and eventually, growth.
But clearly, this is not a slam-dunk. There are risks involved. But I’m prepared to take these risks on, as I’m collecting Telus stock’s almost 10% dividend while I wait. Yet there are those investors who are not prepared to invest in this pretty volatile situation. And I understand. We have seen once unstoppable and unbeatable companies being reduced to nothing in times of industry change and disruption. So, nothing is guaranteed, that’s for sure.
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Alaris Equity Partners, a high yield income stock alternative to Telus
For these investors, I suggest taking a look at Alaris Equity Partners Income Trust (TSX:AD.UN) as an alternative high-yield income stock.
Alaris is a unique investment that offers its shareholders the opportunity to invest in private companies, as Alaris provides capital to private businesses. In return, it holds preferred shares, which collect dividends, as well as participates in the potential profit and growth of these companies. The relationship is such that Alaris participates in the businesses through non-control equity ownership. Through Alaris, regular investors can gain exposure to the private equity market, which is traditionally reserved for institutional investors and high-net-worth investors.
Alaris has created a portfolio of dividend-paying private company investments. This portfolio of 23 holdings offers investors diversification, income, and long-term returns. Alaris is a little-known, niche investment that is currently yielding a very generous 6.6%. So, if you’re looking for a high-yield income stock, maybe Alaris could be a better option for you.
The company’s 2025 results were strong and demonstrated the strength of its portfolio. For example, total revenue and operating income increased by 15.9% in the fourth quarter and 14% for the year. Alaris’ net book value currently stands at $24.79, and its payout ratio remains below its targeted 65%–70% range.
Alaris’ stock price is currently $22.30. The company continues to buy back shares, as they remain undervalued.
The bottom line
While Telus stock’s yield is certainly appealing and it’s an appropriate choice for some investors, others might be looking for something with less risk. I think that although Alaris Income Partners is a lesser-known and smaller company, it offers some distinct benefits, as discussed in this article. And this high yield income stock is yielding a generous 6.6% today.
