Q: Im a retiree in late 60's, focus on Income with a growth potential down the road.
Further to Nancy's question on Telus on its current dividend of about 8%+, and a free cash flow almost 2x of dividend, will this be a time to buy given that the interest rate is coming down, and the banks GIC is about half of this return. I have some idle cash looking for a steady return like GIC. Do u forsee any dividend cut ? Thanks again
Further to Nancy's question on Telus on its current dividend of about 8%+, and a free cash flow almost 2x of dividend, will this be a time to buy given that the interest rate is coming down, and the banks GIC is about half of this return. I have some idle cash looking for a steady return like GIC. Do u forsee any dividend cut ? Thanks again
5i Research Answer:
Telus raised its dividend recently, and we would consider the odds of a cut fairly low. At some point, investors looking for yield should support the stock, barring any further negative news. Sentiment is horrible right now, and it would not take a lot of good news to perhaps see an amplified positive impact to the share price. That being said, it may still be a slower type of recovery. For patient, contrarian investors we do think it is starting to get more interesting.