Dividend cut frees C$2.7 billion cash: Can TELUS stock hold C$11.79 support?

Traders Union
All News
Stocks
Telus slides 0.17% after dividend cut

Highlights

TELUS cut its dividend by 55%, aiming to realize C$2.7 billion in cash savings through 2028 for debt reduction.
TELUS halted all acquisitions and is reviewing non-core assets, focusing strategy on core telecom and AI infrastructure.
TELUS stock trades below key moving averages with negative momentum, likely to trade between C$11.79 and C$12.23 near term.

Dividend cut and asset review as management prioritizes deleveraging

TELUS implemented a 55% dividend cut, a move which substantially reduced shareholder payouts and freed up internal capital, according to Kalkine. This action is expected to generate about C$2.7 billion in cumulative cash savings through 2028, providing additional funds to reduce debt and reinforcing management's focus on deleveraging. The company has also paused all mergers and acquisitions, while reviewing non-core assets such as TELUS Digital and TELUS Health, signaling a tactical shift toward its core telecommunications and AI infrastructure, as stated by Finance Yahoo. These developments mark a significant strategic retrenchment, though price action has remained under broader selling pressure.

Bearish momentum persists as resistance and mixed signals emerge

On the technical front, T is trading below the MA-20, MA-50, and the long-term MA-200 (C$16.54) on the H1 timeframe. The Ichimoku Kijun at C$12.10 serves as immediate resistance. Momentum indicators are generally negative: MACD and ADX both register active sell signals, while RSI reads 44.64 and also points to a sell bias. Stoch RSI signals overbought conditions, and CCI is neutral, highlighting divergence among oscillators. Bull/Bear Power is classified as Strong Buy, suggesting buyer activity intraday despite otherwise bearish momentum, while the Awesome Oscillator remains neutral.

Downward risk outweighs rebound amid consolidation range

In the short term, T is expected to consolidate within a typical volatility band of C$11.79 to C$12.23. The probability of an upward move stands at 35%, while a downward move is more likely at 65%. If price breaks above the C$12.10 Kijun resistance, further gains could follow; conversely, a close below C$11.79 would expose the stock to additional downside risk.

Anton Kharitonov, expert at Traders Union, sees TELUS in a defensive posture after the deep dividend cut and strategic retrenchment. Technical signals remain negative, with price action struggling below all major moving averages and momentum tilted to the downside. The stock is likely to stay rangebound between C$11.79 and C$12.23 unless resistance at C$12.10 is cleared. "Base case is continued weakness for TELUS — I remain cautious unless the price decisively reclaims C$12.10."

Earlier, analysts noted that TELUS stock was experiencing sustained downside momentum and negative technical signals, reflecting a cautious outlook. The current analysis reinforces this prevailing scenario, and traders should closely monitor the C$12.10 resistance level for potential confirmation of any near-term directional shift.

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

The information is based on forecasts and does not constitute investment advice or a guarantee of future results. Market conditions may change. See our Disclaimer and Editorial Integrity for details.