Telus (Toronto: T and T.A) today announced that the company is raising its dividend from $0.50 to $0.525 per quarter. This is a 5% increase, which follows another 5% increase that was announced in May. Good news for me, as it will raise my yield on cost to 6%.
But the company has also announced that, starting with the March dividend, it will stop giving a discount on reinvested divideds. This second announcement was burried in its 3rd quarter results, at page 7. Shares for dividend reinvestment will now be purchased on the open market instead of being issued from treasury.
That's good news overall. I own Telus in my DRiP portfolio.