3 Big Reasons Why I Bought TELUS Stock Last Week

TELUS (TSX:T)(NYSE:TU) isn’t the cheapest dividend stock out there. However, this suggests that it’s relatively resilient, defensive, and predictable.

Why might investors invest in TELUS stock? It could fit the portfolios of income investors seeking passive income, for example.

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I said I was buying TELUS and four other dividend stocks during this market correction. Here are three big reasons why I pulled the trigger on TELUS shares last week.

Track record of dividend growth

TELUS stock has paid an increasing dividend every year since 2004. That’s a pretty long track record among the Canadian Dividend Aristocrats. TELUS ranks as one of the top 20 Canadian Dividend Aristocrats in terms of dividend-growth streak. This track record is a confidence booster for prospective investors.

Nice dividend yield

The dividend stock yields about 4.7%, which is considered a high dividend yield. It is 1.6 times that of the Canadian stock market yield. This is why I mentioned earlier that income investors may be interested after the TSX stock dipped about 17% from its 52-week high.

TELUS stock’s trailing-12-month (“TTM”) dividend payout ratio was sustainable at 63.6% of earnings. For reference, its TTM dividend per…

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