Telus 2015 Annual Report Download - page 26

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26
demand programming service and a broadcasting licence to operate a national terrestrial
pay-per-view service.
See Section 10.4 Regulatory matters in the 2015 annual MD&A for further details related
to regulation generally and specifically in relation to TELUS’ broadcasting distribution
undertakings and the CRTC’s Wholesale Code announced in 2015 for ensuring content
costs are in keeping with consumer demand.
DIVIDENDS DECLARED
The dividends per Common Share declared with respect to each quarter by TELUS,
during the three-year period ended December 31, 2015, are shown below:
Quarter ended (1)(2)
2015
2013
March 31
$0.40
$0.32
June 30
$0.42
$0.34
September 30
$0.42
$0.34
December 31
$0.44
$0.36
Total
$1.68
$1.36
(1) Paid on or about the first business day of the next month.
(2) Adjusted for two-for-one share split effective April 16, 2013.
Our shareholders received a total of $1.68 per share in declared dividends in 2015, an
increase of 10.5% from 2014. Our Board 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 10,
2016, a first quarter dividend of 44 cents per share was declared, payable on April 1, 2016,
to shareholders of record at the close of business on March 11, 2016. The first quarter
dividend for 2016 reflects an increase of 10% from the 40 cent per share dividend paid in
April 2015, consistent with our multi-year 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’s assessment and determination based on the Company’s financial
situation and outlook, TELUS plans to continue with two dividend increases per year
through 2016, normally announced in May and November, and is targeting the increase to
be circa 10% from 2015. There can be no assurance that TELUS will maintain its dividend
growth program beyond 2016, as this program may be affected by factors that impact our
after-tax cash flow, such as: funding future spectrum licence purchases, funding of defined
benefit pension plans, increases in corporate income tax rates and actual results differing
from expectations. Further, the dividend increase target is not necessarily indicative of
dividends beyond 2016. The Board has set a long-term dividend payout ratio guideline of
65% to 75% of sustainable earnings on a prospective basis.
CAPITAL STRUCTURE OF TELUS
The authorized capital of TELUS consists of 4,000,000,000 shares, divided into: (1)
2,000,000,000 Common Shares without par value; (2) 1,000,000,000 First Preferred
shares without par value, issuable in series and; (3) 1,000,000,000 Second Preferred
shares without par value, issuable in series. The Common Shares are listed for trading