BofA lowered the firm’s price target on Telus (TU) to C$20 from C$22 and keeps a Neutral rating on the shares. The announcement of a dividend growth pause is not unexpected given the company’s dividend yield is over 9%, the analyst tells investors in a research note. The firm added that the pause was not its base case assumption, but the decision makes sense given the yield and the market focus on reaching a sustainable dividend payout as a percentage of free cash flow sooner rather than later.
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