Then and Now – Telus
Welcome to another Then and Now post, a continuation of my series where I revisit some older blogposts and either rip them to shreds (because my thinking has totally changed on such subjects) or I’ll confirm my position on various personal finance topics or specific stock and ETF investments.
Today’s post is about a dividend favourite with many DIY investors in Canada: Telus (T).
You can read about my previous Then and Now posts on certain stocks (good and bad!) at the end of this post.
Then and Now – Telus
Gosh, I started writing and hinted about owning Telus stock almost 13 years ago on this site.
Passionate readers and subscribers of this site will know, I’m a HUGE fan of not just dividend paying stocks but rather dividend growth stocks – companies that tend to increase their dividend payments to shareholders year-after-year. Telus has been historically one of those companies.
- Back in 2010, while I shared that BCE stock was going to be where I would put most of my investment money that year into that company I did share that Telus was a good long-term company I would consider owning. Even way back then, I considered buying and owning some Canadian dividend stock selections were somewhat easy.
- Like BCE, I was specifically interested in owning Telus since they made some (and continue to make?!) some serious money year-after-year. So, based on the historical juicy dividends delivered by this company, along with capital gains, I believed after buying a good chunk of BCE that Telus would also be a great long-term holding.
- With the Tax Free Savings Account (TFSA) still quite new to many investors, I knew tax-free, growing dividend income would make great sense for this account – owning Canadian dividend growth stocks inside this account.
- If and when my TFSA was full and out of contribution room, at some point, I also knew that owning Canadian stocks are a solid, tax-efficient way to invest thanks to the Canadian Dividend Tax Credit.
- So, at the start of 2011, I managed to buy some Telus shares for my/our portfolio. I haven’t looked back since…
- Since starting my position in Telus, I’ve purchased hundreds of more shares over the years. I/we own these shares in various investment accounts: TFSA, RRSP and taxable.
- I bought and continue to own Telus because it remains a core telco holding of most Canadian Exchange Traded Funds (ETFs) and big bank equity mutual funds. I figure if they own hundreds of thousands or millions or shares then maybe I should continue to own some too!!
Then and Now – Telus Summary
Telus is off to a roaring start in 2023 – up about 8% YTD at the time of this post.
In the coming weeks, investors can expect to see the final batch of Telus’s earnings in early February, potentially with a small dividend raise as well as I anticipate more free cash flow will occur again…and over time.
Over my investing term with Telus, returns have been juicy but by no means are dividends let alone capital gains guaranteed.
Source: Portfolio Visualizer
That said, I only see the need for Telus and/or acquisitions by Telus accelerating more with time.
My collection of stocks (even the odd one that cuts dividends! – that’s you Algonquin Power (AQN)) continues to reward me as a shareholder via growing dividends and capital gains.
Dividend investing has and remains a major part of semi-retirement plan.
I’ll keep you posted on more holdings and changes as they happen, good, bad or in between!
Thanks for reading and a reminder about my previous Then and Now posts below.
Previous Then and Now posts and stock ownership:
Check out my 2022 update with Waste Connections.
I’ve owned Canadian National Railway since 2016.