TELUS Slashes Dividend by 55% to Tackle Debt and Refocus Strategy

The dividend reset, which brings the annualized payout to $0.75 per share, is expected to generate $2.7 billion in cumulative cash savings through 2028. Alongside this change, the company will terminate its dividend reinvestment plan (DRIP) discount effective October 1. These measures are central to a new strategic framework designed to lower the company's net debt-to-Adjusted EBITDA ratio to 3.0-times or lower by the end of 2028.

TELUS reported a net loss of $1.8 billion for the second quarter of 2026, primarily driven by a $2.1 billion non-cash impairment charge related to its TELUS Digital unit. Consolidated service revenue fell 1% to $4.4 billion, while Adjusted EBITDA declined 2% to $1.8 billion. The company has revised its full-year guidance, now anticipating flat to negative 2% service revenue growth and a 2% to 4% decline in Adjusted EBITDA, citing intense promotional pricing and slower growth in its health and digital segments.