Dividend information

In May 2019, TELUS announced its intention to target ongoing semi-annual dividend increases, with the annual increase in the range of 7 to 10 per cent from 2020 through to the end of 2022. This announcement further extends TELUS’ multi-year dividend growth program originally announced in May 2011 and extended for three additional years in each of May 2013 and May 2016. This program provides investors with ongoing clarity with respect to TELUS’ dividend growth model.

Notwithstanding this target, dividend decisions will continue to be subject to our Board’s assessment and the determination of our financial situation and outlook on a quarterly basis. Our dividend payout ratio guideline in 2019 is 65 to 75 per cent of net earnings per share. So as to be consistent with the way we manage our business, we have revised our target guideline, effective January 1, 2020, to be calculated as 60 to 75 per cent of free cash flow on a prospective basis. There can be no assurance that we will maintain a dividend growth program through 2022.

In November 2019, The TELUS Board of Directors has declared a quarterly dividend of $0.5825 per share on the issued and outstanding Common Shares of the Company payable on January 2, 2020 to holders of record at the close of business on December 11, 2019. This fourth quarter dividend represents an increase of 6.9 per cent from the $0.545 quarterly dividend paid on January 2, 2019 and is the eighteenth dividend increase since TELUS announced its original multi-year dividend growth program in May 2011.

Changes to settlement cycles for Canadian and US securities

Please note that effective September 5, 2017, the settlement dates for all Canadian and US securities (including TELUS) is being shortened from trade date plus three business days to trade date plus two business days. Please see the following notice from the Toronto Stock Exchange for further information.

Eligible dividends

TELUS Corporation ("TELUS") advises that unless stated below, all Common and Non-Voting share quarterly dividends paid since January 2006 are "eligible dividends" as defined by subsection 89(1) of the Income Tax Act. Under this legislation individuals resident in Canada may be entitled to enhanced dividend tax credits that reduce the income tax otherwise payable.

Exceptions

The following portion of Common and Non-voting share dividends paid on April 1, 2007 are eligible dividends.

*Dividend amounts reflected above have been adjusted for 2-for-1 stock split effective April 16, 2013.

Dividend reinvestment and share purchase plan

Investors may take advantage of the automatic dividend reinvestment and share purchase plan to acquire additional common shares without fees. Under this plan, eligible shareholders can have their dividends reinvested automatically into additional shares.

We also offer a share purchase feature, under which eligible shareholders can, on a monthly basis, buy TELUS shares (maximum $20,000 per calendar year and minimum $100 per transaction) without brokerage commissions or service charges.

*Dividend payments prior to the July 2, 2013 dividend payment adjusted for 2-for-1 stock split effective April 16, 2013.