In 2019, we expect to pay out 65 to 75 percent of net earnings per share in dividends. Quarterly dividends of $0.3274 per share will be paid on January 4, 2022 to TELUS shareholders of record as of the close of business on Dec. 10th, 2021.
Is Telus a good stock to buy?
At the current share price of $28.90, the new dividend represents a 4.5 percent annualized yield. Investors can still buy Telus stock at a discount, given the company’s share price was as high as $30 early this year. A rise in international roaming prices in 2022 should help Telus profit. Telus Health and Telus Agriculture, on the other hand, are poised for significant expansion.
Telus should be on your buy list if you have money set aside for a dividend-paying TFSA or RRSP.
How much does the CEO of Telus make?
There is a total compensation package for Darren Entwistle at Telus that totals $12.8 million. Nobody at Telus earns more than the company’s top executives.
Does TELUS pay monthly dividend?
The TELUS Board of Directors declared a quarterly dividend of $0.3274 per share, payable on January 4, 2022, to shareholders of record as of the close of business on December 10, 2021.
Does TELUS have debt?
TELUS had CA$18.2b of debt at the end of March 2021, up from CA$17.5b a year earlier. For additional information, click on the image. Net debt is CA$16.3b, but it also has CA$1.90b in cash.
How Healthy Is TELUS’ Balance Sheet?
TELUS has obligations of CA$6.91b due within 12 months and liabilities of CA$23.0b due beyond 12 months, according to the most recent balance sheet. It has CA$1.90 billion in cash on hand and CA$2.90 billion in receivables due within the next year as a counterbalance. As a result, its liabilities exceed its cash and short-term receivables by CA$25.1b.
TELUS has a CA$35.8 billion market capitalization, which suggests that investors should keep a watch on the company’s use of debt.
If the company’s lenders demand that it strengthen its balance sheet, its shareholders are likely to suffer substantial dilution.
To get a sense of our debt-to-earnings ratio, we look at two primary ratios: the leverage ratio and the debt-to-equity ratio. A company’s net debt divided by EBITDA (profits before taxes, depreciation, and amortization) is the first metric, while the second is the number of times its pre-tax earnings cover its interest expenses (or its interest cover, for short). With this approach, we take into consideration both the total amount of debt and the real interest expenses associated with that loan, which is a significant advantage (with its interest cover ratio).
With a debt-to-EBITDA ratio of 3.6, TELUS’ earnings have more than compensated for the company’s interest costs.
Although the debt levels are substantial, we would not classify them as “problematic.”
In addition, TELUS’s EBITDA has decreased by 12 percent in the last year. If that’s how things continue, it will be like delivering hot coffees on a pogo stick to deal with the debt load. When it comes to analyzing debt, the balance sheet is the obvious place to start. yet future earnings are more important than anything else for TELUS’s long-term financial viability. So if you’d want to know what the experts are saying, you might find this free study on analyst profit estimates interesting.
When it comes to paying off debt, a company requires a steady flow of cash rather than just accounting earnings. That’s why we keep an eye on how much of that EBIT is actually free cash flow. TELUS’s free cash flow in the last three years was only 33 percent of its EBIT, which is lower than we’d expect. In terms of debt repayment, that’s not ideal.
Our View
Both TELUS’s net debt-to-EBITDA and its track record of (not) increasing EBIT make us a little uneasy about its debt levels. However, the company’s EBIT to free cash flow conversion isn’t too awful. With this perspective, it is evident to us that TELUS’s use of debt poses significant concerns to the company’s financial health. Even if everything goes according to plan, this debt carries a higher chance of permanent loss. To analyze debt, it is evident that you should pay close attention to your company’s balance sheet. However, the balance sheet does not contain all investment risk. You should be aware thatTELUS has 5 danger indicators in our investing research, and one of them is really serious…
After all that, if you’re still looking for a company with strong growth prospects and a stable financial position, look no further than our list of net cash growth stocks.
If you want to buy stocks, go with Interactive Brokers, which is rated number one overall by Barron’s and has the lowest costs*. 135 markets, all from a single integrated account: trade equities, options, futures, currency, bonds, and money
How do I make $500 a month in dividends?
You’ll know exactly how to generate $500 a month in dividends by the time we’re done. Build your dividend income portfolio one investment at a time, and get to work.
There is no better passive income source than dividends from dividend-paying stocks!
In the end, who wouldn’t benefit from a little additional cash?
As a result, there’s no need to put it off.
If you’d like to receive dividends on a monthly basis, follow these five actions.
How much dividend is tax free in Canada?
At $63,040 (2020$61,543), ordinary federal taxes begin to be paid, and at this time there is $1,385 (2020 $1,247) of federal AMT payable. When dividends surpass $53,810 (in 2020, $53,231), AMT is triggered. After this amount, dividends are subject to the federal AMT unless the usual federal tax equals or exceeds the minimum amount.
If a single person has only the basic personal amount tax credit, the federal row for eligible dividends displays the amount of actual dividends that can be collected before normal federal taxes are paid for a single person with no other income.
The provincial information shows the amount of actual dividends that can be earned in each province before any ordinary provincial income tax (net of any low income tax reduction) is payable in that province.
All provinces except Quebec will be subject to AMT if this amount surpasses the level of dividends at which federal AMT is due ($52,070 in 2019).
At the given dividend amount, the province’s report also indicates total federal and provincial AMT payable, as well as standard federal income tax.
For 2020 and later years, BC does not include Medical Services Plan premiums, which have been terminated.
(3)QC does not include contributions to the health services fund, health contributions, or payments for prescription medication insurance.
Except in Quebec, provincial AMT is based on a percentage of the federal AMT.
Thus, even if the qualifying dividends do not reach the provincial taxable level, they will still be liable to AMT if there is a federal AMT in place.
The lowest provincial tax rate minus the lowest federal tax rate is used to establish the AMT rates in BC, NL, and ON.
Non-Canadian dividends, whether eligible or not (small business), are not subject to Quebec’s AMT in Quebec.
In the table above, only Canadian dividends that are eligible for AMT are included.
Taxpayers who make a lot of money but pay little tax may be subject to the Alternative Minimum Tax (AMT).
Exemption from the federal Alternative Minimum Tax (AMT) is $40,000.
How long do you have to own a stock to get the dividend?
Dividends are paid out to shareholders after only two business days of ownership. To be eligible for the dividend, you would need to acquire a stock with one second remaining before market closing and hold onto it for two working days. If you’re only interested in a stock’s dividend, you may end yourself paying a high price. The terms “ex-dividend date,” “record date,” and “payout date” are all critical to understanding the entire procedure.
