A Value Stock With a Dividend Yield Over 11% to Buy Near 52-Week Lows

A beaten-down share price has pushed this telecom giant’s yield into double digits, and that may create an opportunity.

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Key Points
  • Telus (TSX:T) now offers an 11.5% dividend yield while trading close to its 52-week low.
  • The company is still adding customers, holding adjusted EBITDA steady, and generating stronger free cash flow.
  • If its deleveraging and network investments keep progressing, today's weak share price could become a solid long-term entry point.

A dividend stock trading near its 52-week low can either be a warning sign or the setup that income investors wait for. The trick is figuring out whether the business underneath the sell-off still has enough fundamental strength to ride through a rough patch. When the answer is yes, a beaten-down share price could create an appealing buying opportunity.

One stock that looks worth a closer look today is Telus (TSX: T). The Canadian communications technology giant now trades at $14.55 per share with a market cap of about $22.9 billion. At this price, it offers a dividend yield of roughly 11.5%. The stock is down about 37% from its 52-week high and sits close to its 52-week low, making it an interesting stock to watch for value-focused investors willing to look beyond short-term market volatility.

Although a double-digit yield will naturally make some investors cautious, the business itself still has qualities that deserve respect, in my opinion. Let us take a closer look at why Telus stock may still have a place in a long-term income portfolio.

Person holding a smartphone with a stock chart on screen

Source: Getty Images

Telus stock is under pressure, but the business is still moving

In short, Telus serves consumers, companies, and the public sector through wireless, internet, health, digital experience, and data-focused services. That mix of businesses gives the company several paths to grow, making it a more attractive investment than a conventional telecom stock.

While the stock’s recent weakness has disappointed investors, its latest operating numbers show there is still real activity under the hood. In its most recent quarter ended in March 2026, Telus delivered total mobile and fixed customer growth of 262,000, including 12,000 mobile phone additions, 229,000 connected devices, and 21,000 internet net additions.

During the quarter, its mobile network revenue rose 1% year-over-year (YoY), consolidated service revenue inched up by 1%, and adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) held steady at $1.8 billion. Similarly, the company’s free cash flow climbed 19% YoY to $583 million.

Meanwhile, Telus is also investing in the future. Its 5G network now reaches more than 90% of the Canadian population, which matters because stronger connectivity keeps supporting demand for higher-value data and digital services. Even if short-term pressure continues, these facts make the company’s underlying resilience clear.

Why the long-term outlook still looks stable

Despite the underlying strength in its fundamentals, the market has clearly turned skeptical as Telus stock has slipped 19% over the last six months. On the surface, that slide makes its 11.5% yield look more like a distress signal than an opportunity. Yet its latest results and outlook still look more stable than broken.

More importantly, Telus is also working on the balance sheet. The company is targeting net debt-to-EBITDA of 3.3 times or lower by the end of 2026 and 3 times or better by the end of 2027. At the same time, potential monetization from Telus Health could help support that deleveraging plan, which would give investors one more reason to believe the current pressure will not last forever.

While Telus may not be a perfect stock, investors are still being paid handsomely to wait, and the business continues to add customers, protect adjusted profitability, and invest in the next phase of growth. That’s why, for income investors who can handle some near-term volatility, this value stock still looks worth considering near its 52-week lows.

Fool contributor Jitendra Parashar has no position in any of the stocks mentioned. The Motley Fool recommends TELUS. The Motley Fool has a disclosure policy.

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