Telus stock falls over 1% as dividend cut and net loss weigh on sentiment

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Telus slides 1.12% today to C$11.95

Highlights

TELUS Corporation reduced its quarterly dividend to CAD 0.1875 per share after reporting a net loss driven by goodwill impairment.
Management lowered 2026 revenue and EBITDA guidance and raised capital expenditure forecasts, with net-debt-to-adjusted-EBITDA at about 3.5x.
Shares of TELUS trade below key averages with strong negative momentum, expected to range C$11.69 to C$12.21 with downside risk dominating.

Leverage concerns rise after payout cut, impaired earnings, and guidance downgrade

TELUS Corporation reduced its quarterly dividend from CAD 0.4184 to CAD 0.1875 per share, as announced on July 31, 2026, following a quarter marked by a net loss primarily due to a significant non-cash goodwill impairment. Management stated that the reduction was intended to strengthen the company’s balance sheet and lower leverage, with net-debt-to-adjusted-EBITDA at approximately 3.5x. TELUS also revised its full-year 2026 revenue and EBITDA guidance downward and increased capital expenditure projections. S&P Global changed TELUS’s outlook from positive to stable on September 21, 2026, in response to higher leverage and weaker financial forecasts amid continued sector competition and elevated investment requirements.

Anton Kharitonov, expert at Traders Union, sees mounting technical and fundamental pressure on TELUS. He notes the deep dividend cut, goodwill impairment, and persistent trading below all key moving averages. Kharitonov highlights strongly negative momentum with oversold technical readings. He believes bearish sentiment is reinforced by management’s guidance cut and rising leverage. "TELUS’s weak structure and loss of investor confidence point to further declines — attempts at recovery look highly fragile here."

Viktoras Karapetjanc, expert at Traders Union, views the dividend reduction as a proactive move to reinforce financial stability. He notes that management's steps lay groundwork for future operational flexibility. Karapetjanc asserts that renewed balance sheet discipline opens opportunities as sector volatility fades. He emphasizes the potential for positive sentiment if management executes its turnaround plan. "I see the risk reset positioning TELUS for longer-term recovery — forward-looking investors should monitor for signs of bullish reversal."

Sholanke Dele, market strategist, is skeptical about near-term prospects for TELUS given the sharp dividend reduction and negative earnings. He notes that sector competition and rising capex further undermine investor confidence. Dele finds market sentiment fragile and cautions against premature optimism. "It’s too early to look for a bottom — persistent outflows and weak guidance signal deeper problems ahead."

Sustained downside momentum as price stays below technical thresholds

Telus is trading below its 20-day, 50-day, and 200-day moving averages (C$12.96, C$13.64, and C$16.61), confirming seller dominance across short-, medium-, and long-term trends. Immediate resistance is seen at the near-term ceiling of C$12.08, with the next support at C$11.69. Momentum readings remain negative: the MACD and ADX both signal continued downside. The RSI is deeply oversold at 23.7, and both the Stochastic RSI and CCI are also in oversold territory. Bull/Bear Power indicates sellers dominate short-term trading and is flagged as oversold. The Awesome Oscillator reinforces bearish pressure. Price is positioned near today’s low, with intraday volatility at 1.41%. The tone remains pressured after the open, consistent with the pronounced negative momentum signals.

Earlier, analysts noted that TELUS’s substantial dividend cut and negative technical outlook underscored persistent downside momentum and heightened risk. The current developments reinforce this bearish scenario, with immediate focus now shifting to the C$11.69 support as a key level to monitor for potential further downside.

Source of Data: T Price Analysis by TU

The analysis is based on a proprietary model combining technical, on-chain, and expert data. Not investment advice. See methodology

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