Why These Dividend Stocks are Gaining in 2025?

3. TELUS Corporation (NYSE:TU)

Dividend yield: 7.32%

Dividend payout ratio: 232.33%

Ex-Dividend Date: March 11, 2025

Number of Hedge Funds: 16

As of February 16, 2025, the stock of TELUS Corporation (NYSE:TU) has seen an increase of 14.35% in its year-to-date. With a market capital of $23.28 billion, the company has a moderate P/E ratio of 32.72.

The Canadian Information Technology (IT) company focuses on its long-term expansion, which is apparent from enhancing its advanced connectivity solutions and launching new services like TELUS Smart Energy and TELUS Home View. Telus aims to cover the broader audience with these new services, thus benefitting its shareholders.

TELUS Corporation (NYSE:TU) recorded 347,000 new customers in the third quarter of 2024. This includes new mobile phone subscribers of 130,000. This growth has led to the company’s stocks being valued at $15.38 per share – an increase of 11.53% in the last month.

TELUS Corporation (NYSE:TU) offers an attractive 7.32% dividend yield alongside a strong commitment to generate consistent income for its shareholders, as demonstrated by the 27 consecutive years of dividend payouts. However, the high dividend payout ratio of 232.33% raises sustainability concerns, indicating the possibility of dividend payments using debts.

TELUS Corporation (NYSE:TU) remains part of 16 hedge fund portfolios in Insider Monkey’s Q3 2024 database, indicating moderate institutional interest in the stocks. With an ex-dividend date of March 11, 2025, investors may have to act quickly after weighing the high yield against the risk of a high payout ratio.