Telus (TSX: T) The Best Canadian Dividend Growth Stock

I’ve written about Telus before, questioning if it is the best Canadian dividend growth stock. On Thursday, the company announced a two cent dividend increase, bringing the dividend growth in the last twelve months to 11.5%. The company also announced to continue to target dividend growth of 10% a year through 2016, and re-upped their share buyback plans ($500M / year) through 2016 as well. The company also confirmed that their dividend growth should keep them in the 65-75% range of their payout ratio. With a 3.6% dividend yield, Telus’s yield is lower than Bell Canada’s (approx 4.9%) and a pinch above Rogers (3.5%).

I continue to look for dips to add to my Telus position. With such great disclosure of future dividend plans, and revenue and EPS growth to back up those plans, Telus is my choice for best Canadian dividend growth stock.