![\"boy](\"https:\/\/www.europesays.com\/canada\/wp-content\/uploads\/2026\/04\/cbf5e04b6c73dff8a9b9b2567cd5c2d1.jpeg\")
Source: Getty Images <\/p>\n Source: Getty Images <\/p>\n
Written by Demetris Afxentiou<\/a> at The Motley Fool Canada<\/p>\n Canada\u2019s big telecom stocks are often regarded as some of the best investments for long-term investors. There are more than a few reasons for that. First, there\u2019s the appeal of owning a Canadian dividend stock that provides a reliable yield. Then there\u2019s also the defensive appeal of telecom stocks themselves.<\/p>\n But which telecom is the ideal Canadian dividend stock to own right now?<\/p>\n Enter Telus (TSX:T<\/a>).<\/p>\n Telus is one of the big telecoms and boasts a portfolio of subscriber-based services that generate a reliable and recurring source of revenue. That revenue stream has allowed Telus to pay out one of the best dividends on the market for well over two decades.<\/p>\n But despite the defensive appeal of providing essential services, the stock has struggled in recent years. In fact, the stock is down a whopping 17% over the past year. As the stock price has dipped, Telus\u2019s yield has swelled.<\/p>\n Does this make Telus a good opportunity right now?<\/p>\n The recent share price dip is tied to larger macroeconomic pressures rather than a company\u2011specific failure on the part of Telus. Telecoms like Telus are capital\u2011intensive, meaning that they are heavily reliant on borrowing to fund network expansion and infrastructure upgrades.<\/p>\n As interest rates rose sharply over the past several years, the cost of borrowing also increased. That put added cost pressure on Telus, leading to a dip in the stock price as investors rotated out of defensive sectors into growth holdings.<\/p>\n Telus has also been working through a period of elevated capital expenditures as it expands its fibre network and invests in digital services. While these do support long\u2011term growth, they temporarily weigh heavily on free cash flow.<\/p>\n Combined with slower subscriber growth and a more cautious consumer environment, these factors have contributed to the stock\u2019s 17% decline. In fact, looking out over a longer five-year period shows Telus\u2019s stock price decline at a staggering 34%.<\/p>\n Investors should note that, above all, none of these issues points to structural weakness in the business. If anything, Telus is mitigating its current risk through a variety of factors.<\/p>\n Despite the headwinds, Telus continues to demonstrate the qualities of a Canadian dividend stock that income investors value. Telus continues to benefit from its reliable, recurring revenue stream from its subscriber business.<\/p>\n If anything, the appeal of that segment has grown in recent years as those subscriber services, particularly the internet and wireless segments, have become a necessity for most.<\/p>\n Story Continues <\/p>\n Further to this, the strong national footprint that Telus offers ensures recurring revenue and low customer churn from across the country.<\/p>\n Finally, there\u2019s Telus\u2019s move to diversify beyond its traditional telecom segments. Telus offers a variety of digital solutions in niche markets such as health and agriculture. This adds an additional complementary revenue stream that continues to see strong growth.<\/p>\n As Telus\u2019s stock price dipped, the yield soared. As of the time of writing, Telus offers a massive 9.8% yield, making it one of the best-paying dividends<\/a> on the market. That high yield raises questions about sustainability, and Telus has moved to shore up its dividend and make it more sustainable in the past year.<\/p>\n That includes freezing the company\u2019s long-standing cadence of providing increases. Telus has, however, stopped short of slashing its dividend.<\/p>\n As Telus moves past this peak investment cycle, capital expenditures are expected to moderate. This coincides with expected drops in interest rates.<\/p>\n Over time, this shift could support stronger free cash flow in the years ahead. Concurrently, growth from Telus\u2019s digital services teams will continue to grow, helping to balance the capital needs of the core telecom business.<\/p>\n In short, Telus offers one of the highest yields on the market, backed by multiple segments that are both stable and growing.<\/p>\n Long-term investors should look at the current 17% pullback as an opportunity for a compelling entry point. The long-term fundamentals of the company are sound, and both the digital and core subscription businesses continue to see strong growth.<\/p>\n As interest rates continue to decline, the stock price should recover, providing upside to more patient investors.<\/p>\n In my opinion, Telus is a Canadian dividend stock that should form a small part of any well-diversified portfolio<\/a>.<\/p>\n The post A Canadian Dividend Stock Down 17% to Buy Forever<\/a> appeared first on The Motley Fool Canada<\/a>.<\/p>\n Before you buy stock in TELUS, consider this:<\/p>\n The Motley Fool Canada team has identified what they believe are the top 10 TSX stocks for 2026\u2026 and TELUS wasn\u2019t one of them. The 10 stocks that made the cut could potentially produce monster returns in the coming years.<\/p>\n Consider MercadoLibre, which we first recommended on January 8, 2014 \u2026 if you invested $1,000 in the \u201ceBay of Latin America\u201d at the time of our recommendation, you\u2019d have over $18,000!*<\/p>\n Now, it\u2019s worth noting Stock Advisor Canada\u2019s total average return is 94%* \u2013 a market-crushing outperformance compared to 85%* for the S&P\/TSX Composite Index. Don\u2019t miss out on our top 10 stocks, available when you join our mailing list!<\/p>\n Get the 10 stocks instantly<\/a><\/p>\n * Returns as of April 20th, 2026<\/p>\n More reading<\/p>\n Fool contributor Demetris Afxentiou<\/a> has no position in any of the stocks mentioned. The Motley Fool recommends TELUS. The Motley Fool has a disclosure policy<\/a>.<\/p>\n 2026<\/p>\n","protected":false},"excerpt":{"rendered":"Source: Getty Images Written by Demetris Afxentiou at The Motley Fool Canada Canada\u2019s big telecom stocks are often…\n","protected":false},"author":2,"featured_media":8750,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[17,7530,7529,7528],"class_list":["post-14134","post","type-post","status-publish","format-standard","has-post-thumbnail","category-canada","tag-canada","tag-revenue-stream","tag-stock-price","tag-telus"],"_links":{"self":[{"href":"https:\/\/www.europesays.com\/canada\/wp-json\/wp\/v2\/posts\/14134","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/canada\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/canada\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/canada\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/canada\/wp-json\/wp\/v2\/comments?post=14134"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/canada\/wp-json\/wp\/v2\/posts\/14134\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/canada\/wp-json\/wp\/v2\/media\/8750"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/canada\/wp-json\/wp\/v2\/media?parent=14134"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/canada\/wp-json\/wp\/v2\/categories?post=14134"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/canada\/wp-json\/wp\/v2\/tags?post=14134"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}