Topic: How To Invest

The Successful Investor Hotline – Thursday, April 1, 2021

Article Excerpt

TELUS CORP., $25.39, Toronto symbol T, is a buy. Telus is Canada’s third-largest wireless carrier after Rogers Communications (No. 1) and Bell Mobility (No. 2). It also sells landline phone, Internet, TV and home security services in B.C., Alberta and eastern Quebec. The stock dropped 3% in the past week after Telus sold 51.3 million new common shares at $25.35 a share for a total of $1.3 billion. If underwriters exercise their option to buy an additional 7.7 million shares, the gross proceeds will rise to $1.5 billion. Those 59.0 million extra shares would increase the total outstanding by roughly 5%. The company plans to use the funds to accelerate upgrades to its fibre-optic systems and ultrafast 5G wireless networks. In 2021, Telus plans to spend $500 million to $750 million of the proceeds on these projects. That’s on top of its previously announced capital spending target of $2.75 billion. For 2022, it will spend the remaining $750 million to $1 billion, which is also…