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    Is TELUS (TSX:T) A Bargain After Its Dividend Cut And Satellite Partnership?

    Simply Wall St·10/09/2026 12:41:59
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    Why TELUS Stock Is Back in Focus After a Tumultuous Week

    TELUS (TSX:T) is in the spotlight after a 55% dividend cut and a sharp share price drop, even as the company advances a new satellite connectivity partnership.

    Investor attention is swinging back to TELUS because the steep dividend reduction and the recent 29% share price drop sit on top of a longer slide, with the stock logging a 30 day share price return of down 14.2% and a 1 year total shareholder return of down 41.5%.

    The move to cut the payout and reset expectations on earnings has clearly weighed on sentiment, which helps explain the year to date share price return of down 36.5% and the 5 year total shareholder return of down 43.5%, even as TELUS promotes its satellite partnership as a growth opportunity rather than an immediate financial fix.

    Compare TELUS with a hand picked group of telecoms and infrastructure plays that screen for quality and price using the 7 high quality undervalued stocks list.

    TELUS now combines a broad telecom, health and digital platform with a sharply reduced dividend and a lower share price. The question is whether that mix is finally cheap enough to consider on valuation grounds.

    Most Popular Narrative: 20% Undervalued

    TELUS last closed at CA$11.43, while the most followed narrative anchors fair value at CA$14.31 based on a 7.45% discount rate and detailed long term cash flow assumptions.

    Deployment and commercialization of next-generation technologies, including AI-powered customer experience platforms, data center assets for "sovereign AI" infrastructure, and private 5G, position TELUS to create new revenue streams, lower cost-to-serve, and enhance its competitive moat, translating into higher future earnings and margin improvements.

    See why 192 investors see TELUS as 20% undervalued.

    Result: Fair Value of CA$14.31 (UNDERVALUED)

    Still, the TELUS story can break if high capital spending keeps pressure on debt, or if regulatory changes squeeze pricing and profitability harder than expected.

    Find out about the key risks to this TELUS narrative.

    Next Steps

    If the TELUS debate feels split between risk and opportunity, that is exactly why it pays to move quickly and review the data for yourself so you can judge whether the balance of concern and optimism fits your own approach, starting with the 4 key rewards and 2 important warning signs.

    Looking for more TELUS sized investment ideas?

    Do not stop at TELUS alone. Broaden your watchlist with fresh ideas that match your style, or you risk missing opportunities that better fit your goals.

    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.