As far as Canadian companies go, Telus Corporation (TSX:T) (NYSE:TU) continues to be an excellent choice for investors to consider as a core portfolio position for the long-haul. In this article, I’m going to highlight a few of the key reasons I think Telus ought to be on every Canadians’ watch list today.
For those investors with income needs, Telus is an excellent choice. Currently sitting at a dividend yield above 5% at the time of writing, Telus has shown an ability to generate significant income returns for investors over time, with a very respectable dividend growth rate in the past.
Despite the current uncertainty we are seeing related to the coronavirus pandemic, Telus has show that its revenues and cash flows are largely recession-resistant, providing stability to the company’s dividend payout ratio and reducing perceived investor risk with respect to its dividend.
From a value perspective, Telus also checks a number of boxes for me today. The company’s share price has come under some pressure since this spring, however, shares have stabilized and recovered nicely in the near-term.
The actual magnitude of the negative impact of this pandemic on Telus’ bottom line is immaterial in my view, and I expect this durability to be priced in over the long haul.
Currently, growth investments are still seeing massive capital inflows, pushing money out of safer or more defensive businesses like Telus, however, over the long term I do expect Telus to be a great income and capital appreciation winner with less risk, making this a stock to watch today.
Invest wisely, my friends.
