TELUS stock slides slightly after 55% dividend reduction and weak technical momentum

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Telus slides 0.88% today after dividend cut

Highlights

TELUS Corporation reduced its quarterly dividend by 55% to CAD 0.1875 per share and revealed a cash savings plan targeting CAD 2.7 billion by 2028.
Second-quarter revenue reached CAD 4.92 billion with a net loss of CAD 1.84 billion, including a non-cash impairment at TELUS Digital.
Shares of TELUS trade below key medium- and long-term averages, with technical signals indicating weak momentum and a probable range of CAD 11.57 to CAD 11.95 over the next five sessions.

Cash savings plan and tech initiatives set against quarterly loss

TELUS Corporation reduced its quarterly dividend by 55% to CAD 0.1875 per share and outlined a strategy aimed at generating approximately CAD 2.7 billion in cash savings by 2028. The company reported second-quarter revenue of CAD 4.92 billion and a net loss of CAD 1.84 billion, which included a non-cash impairment charge related to TELUS Digital. TELUS also announced partnerships involving artificial intelligence integration, the completion of an infrastructure test for direct smartphone-to-satellite connectivity, the launch of Scam Protection powered by Norton on all new mobility data plans, and the opening of a new operations center in Guatemala.

Anton Kharitonov, expert at Traders Union, sees the 55% dividend cut and impairment-driven net loss as clear signs of structural weakness at TELUS. Momentum and volume signals remain weak, with the stock unable to reclaim its medium- and long-term moving averages. He notes buyers show little conviction despite intraday strength. There is no technical evidence for a bullish reversal. "These cost-saving measures may buy time, but unless revenue growth recovers, TELUS remains at risk of further declines," Kharitonov warns.

Viktoras Karapetjanc, expert at Traders Union, believes TELUS’s decisive cash savings plan creates opportunities for operational improvement. He notes that strategic AI partnerships and digital initiatives position the company to capture future growth. Karapetjanc sees this restructuring as a rallying point for renewed institutional interest in the stock. "Despite short-term downside, the bullish structure remains intact and further growth should be expected as new strategies are implemented," he states.

Sholanke Dele, market strategist, views the dividend cut and net loss as likely to damage investor sentiment in the near term. Broader market risks and industry headwinds could amplify volatility, especially with weak macro signals for the sector. Dele feels confidence remains fragile following these results. "Short-term conviction is lacking here — I would not expect buyers to step in aggressively until sentiment stabilizes," Dele concludes.

Short-term buyer support contrasts long-term seller control

TELUS is currently trading at C$11.76, holding above its 20-day moving average (C$11.66) but below both its 50-day (C$12.58) and 200-day (C$16.01) moving averages. This positioning suggests buyers are providing short-term support, while sellers remain in control over the medium and long term, as confirmed by the alignment of the 50-day and 200-day averages. Immediate support lies at C$11.66 and resistance is close at C$11.77, with further resistance from the Ichimoku Kijun at C$11.84. Momentum indicators remain weak, with the MACD and ADX forecasting continued selling pressure. RSI shows a neutral reading at 47.89, while the Stochastic RSI is deeply overbought at 97.82, indicating the potential for a short-term pullback. Bull/Bear Power (BBP) is positive at 0.25, showing buyers are currently active intraday, but broader signal divergence and a neutral Awesome Oscillator direction leave overall trend conviction unclear.

Earlier, analysts noted that while TELUS’s service enhancements supported its long-term growth drivers, persistent downside momentum kept the stock under technical pressure. The latest dividend cut and cost-saving measures reinforce the focus on financial discipline amid ongoing market headwinds, with the current volatility band of C$11.57 to C$11.95 providing the key trading range to monitor in the near term.

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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