Tags: TELUS | yield | growth | TU

TELUS: Attractive Yield, Steady Growth

By    |   Monday, 12 Dec 2011 08:25 AM

Canadian telecom provider TELUS (TU) is a major player in wireless and wireline industries there, with shares trading on the NYSE. The stock provides an attractive yield, in line with its competitors, and has reported steady revenue and earnings growth.

TELUS is headquartered in western Canada and focuses on that portion of the country but also provides some telecom services in central and eastern Canada. The largest telecom service sector is wireless, with more than 7 million subscribers, making TELUS Canada's third-largest wireless provider. Landline telephone services is 3.6 million subscribers and there are 1.3 million Internet subscribers and 450,000 television subscribers.

For the 2011 third quarter the company reported revenues of $2.62 billion, up 6.5 percent from $2.46 billion. Net income for the quarter was $1 per share, up from 78 cents a year earlier. For full year 2011, TELUS is forecast to earn $3.78 compared to $3.22 in 2010. All figures are in Canadian dollars, now at parity with the U.S. dollar.

Data growth and dividends

The growth engine for TELUS is data services and revenues rather than voice. In the third quarter the company added 133,000 new wireless subscribers, most activating smartphone service. The result was a 53 percent increase in wireless data revenues year-over-year, as more cell phone users switch to smartphones.

For the third quarter, the TELUS board of directors increased the quarterly dividend by 3 cents to 58 cents per share. Payout increases have been coming every two quarters since the distribution rate was at 47.5 cents for the second quarter of 2010. The dividend has increased almost fourfold since mid-2004. The dividend yield is currently above 4 percent.

The analysts at RBC Capital markets recently upgraded TU to outperform from sector perform.

The company next reports on Feb. 3.

© 2017 Newsmax Finance. All rights reserved.

   
1Like our page
2Share
Companies
Canadian telecom provider TELUS (TU) is a major player in wireless and wireline industries there, with shares trading on the NYSE. The stock provides an attractive yield, in line with its competitors, and has reported steady revenue and earnings growth. TELUS is...
TELUS,yield,growth,TU
296
2011-25-12
Monday, 12 Dec 2011 08:25 AM
Newsmax Inc.
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved