TELUS Slashes Dividend 55 Percent to Reduce Debt

TELUS Corporation reported a net loss of $1.8 billion for the second quarter of 2026, primarily due to a $2.1 billion non-cash impairment of its TELUS Digital unit. In response, the company's Board of Directors reset the quarterly dividend by 55 percent, reducing the payout to $0.1875 per share from 41.84 cents. This reduction is expected to generate approximately $2.7 billion in cumulative cash savings through 2028.

Under the leadership of Victor Dodig, who became CEO in February, the company is implementing a strategic reset to repair its balance sheet following heavy investments in 5G, fibre networks, and acquisitions. The company will remove its dividend reinvestment plan discount effective October 1, 2026, and intends to monetize non-core assets, including real estate and portions of the TELUS Health division. These measures aim to lower the net debt to Adjusted EBITDA ratio to 3.0-times or less by the end of 2028.

TELUS also revised its full-year 2026 financial guidance downward, now projecting consolidated service revenue to be flat or down 2%. Moving forward, the company will prioritize investments in wireless and wireline networks alongside digital and artificial intelligence infrastructure.