Should You Buy Telus Stock for Its 6.9% Dividend Yield?

High-yielding dividend stocks can be extremely valuable for investors, especially if you have a tax-free savings account (TFSA). Within a TFSA, your dividend income isn’t taxed and that can make securing a high-yielding payout particularly attractive.

One top telecom stock which offers a high yield today is Telus Corporation (TSX:T)(NYSE:TU). Currently, the stock yields 6.9%, which is abnormally high. But with shares of Telus falling 5% over the past five years, the stock hasn’t generated gains while its dividend has risen in value. For investors, buying the stock while it remains lowly valued could be a great move.

To generate $1,000 in dividends from Telus stock over the course of a full year, investors would need to buy approximately $14,500 worth of shares in the telecom company. Telus has increased its dividend over the years and with continued growth, and that’s a trend the company plans to continue. Telus is aiming to make semi-annual dividend increases through to the end of 2025, and possibly beyond that. Its goal is to increases its dividend between 7% and 10% per year.

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Telus is one of the largest telecom companies in Canada and with a strong business model and subscriber base, it can make for a good dividend stock to buy and hold for years.

While the stock hasn’t produced strong gains for investors in recent years, it can still make for a good income-generating investment to own due to its high dividend and the company’s commitment to raising the payout in the years ahead.