This Top Telecom Stock's Yielding 5% After Another Rate Hike

Dividend income can be very valuable during a period of uncertainty as it can generate cash flow for your portfolio at a time when the markets may be struggling. One dividend stock that can be a pillar for your portfolio for the long term is Telus Corporation (TSX:T)(NYSE:TU).

The telecom company is coming off a decent quarter where its sales of $3.98 billion grew 7.7% from the prior-year period. Its total subscriber connections rose 8.4% during the period as the company's operations proved resilient during the period ending Sept. 30.

President and CEO Darren Entwistle highlighted the results: "we continued to achieve robust customer growth in the quarter, including 111,000 high-quality mobile phone net additions and 79,000 wireline customer additions, driven by 50,000 internet, 19,000 TV and 18,000 security net additions, in addition to the lowest residential voice net losses since 2004."

There was also great news for dividend investors as Telus also announced it would be increasing its dividend by 7%, up to $0.3112 every quarter. On an annual basis, that's $1.2448 every year, which today yields a return of just over 5%.

On a $25,000 investment, you could be earning $1,250 a year in dividends.

Telus has been a great dividend stock over the years as it's regularly increased its dividend payments and it's a pattern that's likely to continue as its profits and cash flow continue to show strong stability, even amid challenging economic conditions.

Year to date, shares of Telus are down 1%, slightly better than how the TSX has done thus far.