Telus 2013 Annual Report Download - page 22

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22
COMPETITION
We expect continued strong competition in the wireline and wireless businesses in all
principal markets and geographic areas. See MD&A Section 4.1 Principal markets
addressed and competition for a summary of the competitive environment in each of our
principal markets and geographic areas. Also refer to MD&A Section 10.2 Competition
for further details on the risks associated with such competitive environment and
Section 9: General outlook and assumptions for an assessment of our competitive
position as it relates to the telecommunications industry generally and specifically as it
relates to the wireless and wireline industries.
DIVIDENDS DECLARED
The dividends per equity share(1) declared with respect to each quarter by TELUS,
during the three-year period ended December 31, 2013, are shown below:
Quarter ended (2)(3)
2013
2012
2011
March 31
$0.320
$0.290
$0.2625
June 30
$0.340
$0.305
$0.275
September 30
$0.340
$0.305
$0.275
December 31
$0.360
$0.320
$0.290
Total
$1.360
$1.220
$1.1025
(1) Equity shares: Common Shares, and prior to February 4, 2013, common shares and non-voting
shares.
(2) Paid on or about the first business day of the next month.
(3) Adjusted for two-for-one share split effective April 16, 2013.
Our shareholders received a total of $1.36 per share in declared dividends in 2013, adjusted
for the subdivision of our Common Shares that occurred on a two-for-one basis effective
April 16, 2013, an increase of 11.5% from 2012. 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 12, 2014, a first quarter dividend of 36 cents per share was
declared, payable on April 1, 2014 to shareholders of record at the close of business on
March 11, 2014. The first quarter dividend for 2014, reflects an increase of 12.5% from the
32 cent per share dividend paid in April 2013, consistent with our dividend growth program.
We first announced our dividend growth program in May 2011. In May 2013, we announced
plans to extend our dividend growth program for another three years through 2016.
Subject to the Board of Directors’ assessment and determination based on the Company’s
financial situation and outlook, TELUS plans to continue with two dividend increases per
year to 2016, normally announced in May and November, and is targeting the increase to
be circa 10% annually. There can be no assurance that TELUS will maintain its dividend
growth program through to 2016, as this program may be affected by factors such as
regulatory and government decisions; competitive environment; reasonable economic
performance in Canada; our earnings, free cash flow, and levels of capital expenditures;
and spectrum licenses purchases. Further, the dividend increase target is not necessarily
indicative of dividends beyond 2016. The Board of Directors has set a long-term dividend
payout ratio guideline of 65% to 75% of sustainable net earnings on a prospective basis.