Telus 2012 Annual Report Download - page 20

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20
DIVIDENDS DECLARED
The dividends per Common Share and Non-Voting Share declared with respect to each
quarter by TELUS, during the three-year period ended December 31, 2012, are shown
below:
Quarter ended (1) 2012 2011 2010
March 31 $0.580 $0.525 $0.475
June 30 $0.610 $0.550 $0.500
September 30 $0.610 $0.550 $0.500
December 31 $0.640 $0.580 $0.525
Total $2.440 $2.205 $2.000
(1) Paid on or about the first business day of the next month.
Our shareholders received a total of $2.44 per share in declared dividends in 2012, which
was an increase of 10.7% from 2011. Our Board of Directors reviews the dividend rate
quarterly. Our quarterly dividend rate will depend on an ongoing assessment of free cash
flow generation and financial indicators including leverage, dividend yield and payout ratio.
On February 13, 2013, a first quarter dividend of 64 cents per share was declared, payable
on April 1, 2013 to shareholders of record at the close of business on March 11, 2013. The
first quarter dividend for 2013 reflects an increase of 10.3% from the 58 cent per share
dividend paid in April 2012, consistent with our dividend growth model.
We announced our dividend growth model in May 2011. Subject to the Board of Directors’
assessment and determination, we expect to continue with two dividend increases per year
through 2013, which would on an annual basis provide an increase of circa 10%. The
dividend increase policy is not necessarily indicative of dividends beyond 2013. The Board
of Directors has approved a 10 percentage point increase in the dividend payout ratio
guideline to a range of 65% to 75% of sustainable net earnings on a prospective basis for
dividends declared in 2013 onward. The change results from the non-cash effects of
applying the amended accounting standard IAS 19 Employee benefits (2011) in 2013, which
included a reduction of net income and earnings per share, as discussed in Section 8.2 of
the MD&A. See MD&A Section 4.3 for our financing and capital structure management
plans.
CAPITAL STRUCTURE OF TELUS
The authorized capital of TELUS consists of 4,000,000,000 shares, divided into: (1)
1,000,000,000 Common Shares without par value; (2) 1,000,000,000 Non-Voting Shares
without par value; (3) 1,000,000,000 First Preferred shares without par value, issuable in
series and; (4) 1,000,000,000 Second Preferred shares without par value, issuable in
series. The Common Shares are listed for trading on the Toronto Stock Exchange
(“TSX”) and the New York Stock Exchange (“NYSE”). Following the approval of the
Share Exchange, the Non-Voting Shares were delisted from the NYSE before the
market opened on February 4, 2013 and the Common Shares (including the Common
Shares issued in exchange for Non-Voting Shares) began trading on the NYSE at the
start of trading on February 4, 2013. The Non-Voting Shares were delisted from the TSX
at the close of business on February 8, 2013 and the Common Shares issued in