Dividend policy and dividend growth program
TELUS announced its intention to target ongoing semi-annual dividend increases, with the annual increase in the range of 7 to 10% from 2017 through to the end of 2019. This announcement further extends TELUS’ multi-year dividend growth program originally announced in May 2011 and initially extended in May 2013 and provides investors with ongoing clarity wit 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 long-term dividend payout ratio guideline is 65 to 75 per cent of prospective net earnings. There can be no assurance that we will maintain a dividend growth program through 2019.
Recent dividend history
In August 2017, the TELUS Board of Directors has declared a quarterly dividend of $0.4925 cents Canadian per share on the issued and outstanding Common Shares of the Company payable on October 2, 2017 to holders of record at the close of business on September 8, 2017.
This third quarter dividend represents a 7.1% increase from the $0.46 quarterly dividend paid on October 3, 2016.
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.
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.
The following portion of Common and Non-voting share dividends paid on April 1, 2007 are eligible dividends.
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.