Telus, one of the companies that I own in my DRiP portfolio, has announced last week that its next dividend will be unchanged at $0.475 per share. This means no change to the dividend, whereas this is usually the time when the company announces the annual increase in dividend.
The announcement was part of the third quarter results (full text here). Revenues were sligthly lower, a reflection of the country's weak economic growth. Meanwhile, the company is continuing with its capital expenditures program to complete its next generation wireless network (which will be completed in 2010) and continue its wireless broadband expansion. Personally, I also get the feeling that the company is bracing for the entrance of new competition in Canada be being cautious.
The lack of a dividend increase is a bit of a disappointment. However, the company also announced an amendment to the reinvestment plan to introduce a 3% discount on shares purchased by reinvested dividends. As a result of this, I am effectively getting a 3% increase in my dividend even though the nominal dividend remains the same.