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TELUS Announces Strategic Financial Plans and Dividend Adjustments

Story Highlights
  • TELUS Corporation announced a new free cash flow growth target and plans to step down its Discounted DRIP starting in 2026.
  • TELUS aims to reduce its net debt to EBITDA leverage ratio to approximately 3-times by the end of 2027, supported by strategic partnerships.
  • Looking for the best stocks to buy? Follow the recommendations of top-performing analysts.
TELUS Announces Strategic Financial Plans and Dividend Adjustments

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Telus ( (TSE:T) ) has shared an update.

On December 3, 2025, TELUS Corporation announced a revised mid-term outlook and capital allocation framework, including a new free cash flow growth target. The company plans to step down its Discounted DRIP starting in 2026 and pause dividend growth until its share price aligns with growth prospects. TELUS aims to reduce its net debt to EBITDA leverage ratio to approximately 3-times by the end of 2027, supported by strategic partnerships and asset divestitures. The company expects to generate $2.15 billion in free cash flow in 2025 and aims for a minimum 10% annual growth rate through 2028, with significant deleveraging initiatives planned.

The most recent analyst rating on (TSE:T) stock is a Hold with a C$19.00 price target. To see the full list of analyst forecasts on Telus stock, see the TSE:T Stock Forecast page.

Spark’s Take on TSE:T Stock

According to Spark, TipRanks’ AI Analyst, TSE:T is a Neutral.

Telus’ overall stock score is driven by stable financial performance and promising growth prospects in health and AI, as highlighted in the earnings call. However, technical analysis shows bearish trends, and high leverage poses financial risks. The high dividend yield provides some valuation support, but the stock remains relatively expensive.

To see Spark’s full report on TSE:T stock, click here.

More about Telus

TELUS Corporation is a global communications technology company operating in over 45 countries, generating more than $20 billion in annual revenue. The company offers a wide range of broadband services for consumers, businesses, and the public sector. TELUS is known for its commitment to customer service excellence and social capitalism, with significant contributions to communities through various initiatives. TELUS Health and TELUS Agriculture & Consumer Goods are notable divisions, focusing on preventive medicine, well-being technologies, and optimizing producer-consumer connections through digital technologies.

Average Trading Volume: 5,803,249

Technical Sentiment Signal: Sell

Current Market Cap: C$28.28B

For an in-depth examination of T stock, go to TipRanks’ Overview page.

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