Why is Telus stock up 1.9% today?

Traders Union
All News
Stocks
Telus rises 1.9% today on rebound

Highlights

TELUS Corporation cut its annual dividend by 55% to align payouts with free cash flow and stabilize its balance sheet.
Management is targeting net debt to EBITDA of about 3.0x and is prioritizing capital discipline and digital service initiatives.
Shares of TELUS trade below key moving averages with technical indicators signaling strong bearish momentum and an expected range of $11.39 to $12.07 in the next five days.

Dividend slashed to protect cash flow as earnings remain weak

TELUS Corporation has enacted a substantial 55% reduction in its annual dividend, aiming to align payouts with free cash flow and enhance balance sheet stability. This move is intended to preserve cash, reduce net debt to targeted EBITDA levels around 3.0x, and support long-term financial health following a period of weaker earnings, declining legacy revenues, and elevated interest costs. The company continues with its quarterly dividend schedule and maintains a yield exceeding 6%. Management is focusing on disciplined capital expenditures, digital service innovation, and strengthening its core networks as part of its turnaround strategy.

Anton Kharitonov, expert at Traders Union, sees the 55% dividend cut as a clear sign of distress rather than strength. He stresses that Telus remains under heavy selling pressure, with all core technicals and sentiment indicators flashing red. The stock's prolonged position below major moving averages and persistent bearish signals suggest that downside is far from exhausted. Kharitonov warns that the company faces significant structural headwinds from declining legacy revenues and high interest costs. "The current rebound looks fragile — sellers dominate and there is no compelling reason to expect a lasting turnaround at these levels," says Kharitonov.

Viktoras Karapetjanc, expert at Traders Union, recognizes the dividend adjustment as a proactive step that positions Telus to stabilize finances and unlock future value. He sees management’s renewed discipline in capital spending and focus on innovation as strong signals for long-term growth. The current yield remains attractive, bolstering income appeal despite near-term challenges. Karapetjanc believes these moves set a solid foundation for robust recovery. "With financial health prioritized and a renewed strategy in play, investors can expect upward momentum to build from current lows," affirms Karapetjanc.

Jainam Mehta, market strategist, notes the technical landscape remains negative, but oversold readings could set up a short-term tactical bounce. He points to the deep RSI and intraday gap as signs that contrarian traders may start to probe for a reversal. However, the risk of downside remains high if C$11.53 support breaks. "If we see a decisive bounce above C$11.87, buyers could briefly regain control — otherwise, any rally should be viewed as a fade opportunity," Mehta suggests.

Technical signals reinforce bearish dominance despite brief rally

Telus is trading below key moving averages, with the last traded price of C$11.79 well under the MA-20 at C$12.57, MA-50 at C$13.35, and MA-200 at C$16.44, reflecting continuing downside pressure across short-, medium-, and long-term trends. The current bearish alignment between MA-50 and MA-200 confirms a negative long-term structure for the stock, with the near-term ceiling at C$11.87 and support at C$11.53. Daily momentum remains weak. The Moving Average Convergence Divergence (MACD) and Average Directional Index (ADX) both forecast sell signals, indicating bearish momentum. Relative Strength Index (RSI) is deep in oversold territory at 17.98, confirmed by the Stochastic RSI reading of 0 and the Commodity Channel Index (CCI) at -131.09. Sellers clearly dominate, as shown by the Bull/Bear Power (BBP) at -0.35 with an oversold forecast. The Awesome Oscillator (AO) is also negative, reinforcing the bearish tone. Today the stock opened with an upside gap of about C$0.23, or 1.99%, and is now near its session high. Intraday volatility stands at 2.95%. The stock is gaining C$0.22 or 1.9% on the day, showing strength toward highs, but technical momentum remains aligned with sellers.

Previously it was reported that TELUS faced persistent selling pressure and a bearish outlook following a significant dividend reduction aimed at improving its balance sheet. The current article reinforces this negative technical structure, with the key downside risk now centered on a sustained break below C$11.53 potentially triggering further declines within the forecast range.

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

This material may contain third-party opinions, none of the data and information on this webpage constitutes investment advice according to our Disclaimer. While we adhere to strict Editorial Integrity, this post may contain references to products from our partners.