Telus Corp. has cut its annual dividend by about 55 percent and announced plans to sell assets as new chief executive Victor Dodig moves to reduce the company’s debt and strengthen its balance sheet.
According to Bloomberg, the lower dividend will save the company about C$2.7 billion in cash. Shareholders will now receive an annual dividend of 75 Canadian cents per share.
The Vancouver-based telecommunications company said it is exploring the sale of non-core assets within its Telus Health business and is also working to sell real estate.
Telus has been seeking to reduce debt after years of acquisitions and major investment in fibre and 5G infrastructure.
Dodig, the former chief executive of Canadian Imperial Bank of Commerce, took over as CEO in February, replacing long-serving leader Darren Entwistle.
THe company said it would prioritise investment in areas with the strongest growth potential, including its wireless and wireline networks, as well as digital and artificial intelligence infrastructure.
Dodig said: “Our focus is on disciplined execution and ensuring maximum returns on every dollar of capital we deploy.”
According to Bloomberg, the dividend reduction and planned asset sales form part of a broader strategy to improve Telus’ financial position while focusing future investment on its core telecommunications and technology businesses.
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