1135 ET - Telus is the best pick among Canadian telecoms for foreign investors thanks largely to currency dynamics, TD Cowen's Vince Valentini says. In a report, he says that given the current USD-CAD rate of 1.47, investors can buy a Telus share with an equivalent USD annual dividend of about US$1.10. If dividend growth slows, to 4% from 7%, a dividend of C$1.61 becomes C$1.74 in two years and "if the CAD recovers to 1.35 over time, still well above the 20-year average of about 1.2, then annual income rises to US$1.29, for a prospective yield of 9.2%." Valentini thinks that Telus shares will also rise in value over time, and eventually also increase its dividend as well. He figures USD buyers would see appreciation of 26% over two years.(adriano.marchese@wsj.com)
(END) Dow Jones Newswires
February 03, 2025 11:37 ET (16:37 GMT)
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