Telus (T) has been under the gun lately, falling 5% on dividend sustainability concerns raised by Veritas - concerns the market shares...

… with current trading representing a near-9% yield. The picture reads a lot like BCE’s pre-cut position, with management aiming to reduce leverage after bringing Telus International back into the fold…

… but having little free cash to do it, given the capital outlay required to support the current dividend (DRIP alleviates some of this pressure).

With front row seats to Northland’s 30% fall after announcing a cut last week, ripping the bandaid off isn’t an easy call…

… especially if non-core sales or a Telus Health spinout can plug the hole. Either way, tough to imagine the stock won’t lag peers until resolved.

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