Telus is a fairly frustrating stock, there is little doubt about that.
Right now I do believe the dividend is sustainable, but it is fairly tight. The company's free cash flow will not cover the dividend in 2024 and if they guide to free cash flows not covering in 2025, I will strongly consider moving on from my position and begin to question its status as a Foundational Stock.
Regulations are starting to creep their way into the Canadian telecom sector and ultimately in an effort to increase competition and reduce cell phone bills, the Big 3 may be impacted.
At this point in time, Telus is a firm hold in my portfolio, as I do feel a reduction in interest rates will result in valuation expansion on a price to earnings basis. But, I have not added to my position in quite some time, and it remains one of the lower allocations out of all the Canadian Foundational stocks I own.
Right now, I am in wait and see mode with the company, and will look to the end of the year when it issues its Fiscal 2025 guidance. That will be the deciding factor for me.