Where I See Telus Stock 3 Years From Now

Three years from now, I believe TELUS (TSX:T) stock will be trading meaningfully higher than it is today, and the math isn’t complicated.

The Canadian dividend stock is in the middle of a deleveraging cycle, free cash flow is accelerating, and two of its fastest-growing divisions are about to hit their stride.

If you’re patient, this is a stock that could quietly deliver strong total returns while paying you a fat dividend along the way.

The TELUS stock price estimates

Let’s start with the analyst estimates, sourced from TIKR.com.

• In 2025, TELUS posted normalized earnings per share (EPS) of $0.92. By 2029, analysts estimate that the number will climb to $1.39.
• Revenue is projected to grow at a compound annual rate of 3%, reaching roughly $23 billion by 2028.
• EBITDA (earnings before interest, tax, depreciation, and amortization) margins are expected to hold steady in the 36% range throughout.

Now here’s where it gets interesting. TELUS currently trades at a forward price-to-earnings (PE) ratio of 19.4 times, almost exactly in line with its 10-year historical mean of 19.6 times.

That gives us a clean base case: apply the historical mean PE of roughly 19.6 times to the 2028 EPS estimate of $1.23, and you get a share price target of around $27, above the current price of $18.10

In a bull scenario, where sentiment improves, the dividend discount narrows, and the PE re-rates toward the higher end of its historical range (27.7 times, that same $1.39 EPS estimate implies a share price closer to $38. That’s roughly 110% upside from current levels.

The bear case assumes TELUS trades near its historical trough multiple of 14 times. At $1.39 in EPS, that puts the stock around $19.50, roughly 5% above where it sits today. Not spectacular, but a reminder that valuation compression is a real risk if execution stumbles.

The bull case for the Canadian dividend stock

On TELUS’ earnings call, outgoing CEO Darren Entwistle outlined a series of growth drivers that support the bull case.

• Free cash flow hit a record $2.2 billion in 2025, up 11% year over year.
• TELUS is now guiding for approximately $2.45 billion in free cash flow for 2026, roughly another 10% increase. That kind of consistent cash generation is what funds both the dividend and the deleveraging plan.
• The leverage ratio dropped from 3.9 times EBITDA to 3.4 times in 2025 and is expected to reach three times or better by the end of 2027. Lower debt means lower interest costs and more cash available for shareholders.

Additionally, revenue from TELUS Digital’s AI-enabling capabilities rose 44% in Q4 and 35% for the full year. The company is targeting $2 billion in AI-enabling revenue by 2028. TELUS Health, meanwhile, is expected to post double-digit EBITDA growth in 2026. Together, they represent a meaningful shift in the quality and durability of TELUS’ earnings profile.

While you wait for the share price to re-rate, TELUS pays a quarterly dividend and offers a yield of 9.2%. At the current payout level and a prospective cash dividend payout ratio of roughly 70%, the income stream is well supported.

Management has signalled dividend growth will resume once the deleveraging plan is further advanced and the discount reinvestment plan is fully removed.

Three years from now, the base case puts TELUS at around $27. The bull case pushes toward $38. Either way, you’re collecting dividends while the story plays out. That’s a combination worth paying attention to.

The post Where I See Telus Stock 3 Years From Now appeared first on The Motley Fool Canada.

Should you invest $1,000 in TELUS right now?

Before you buy stock in TELUS, consider this:

The Motley Fool Canada team has identified what they believe are the top 10 TSX stocks for 2026… and TELUS wasn’t one of them. The 10 stocks that made the cut could potentially produce monster returns in the coming years.

Consider MercadoLibre, which we first recommended on January 8, 2014 … if you invested $1,000 in the “eBay of Latin America” at the time of our recommendation, you’d have over $16,000!*

Now, it’s worth noting Stock Advisor Canada’s total average return is 87%* – a market-crushing outperformance compared to 76%* for the S&P/TSX Composite Index. Don’t miss out on our top 10 stocks, available when you join our mailing list!

Get the 10 stocks instantly #start_btn6 { background: #0e6d04 none repeat scroll 0 0; color: #fff; font-size: 1.2em; font-family: 'Montserrat', sans-serif; font-weight: 600; height: auto; line-height: 1.2em; margin: 30px 0; max-width: 350px; text-align: center; width: auto; box-shadow: 0 1px 0 rgba(0, 0, 0, 0.5), 0 1px 0 #fff inset, 0 0 2px rgba(0, 0, 0, 0.2); border-radius: 5px; } #start_btn6 a { color: #fff; display: block; padding: 20px; padding-right:1em; padding-left:1em; } #start_btn6 a:hover { background: #FFE300 none repeat scroll 0 0; color: #000; } @media (max-width: 480px) { div#start_btn6 { font-size:1.1em; max-width: 320px;} } margin_bottom_5 { margin-bottom:5px; } margin_top_10 { margin-top:10px; }

* Returns as of March 24th, 2026

More reading

• 2 Brilliant Growth Stocks to Buy Now and Hold for the Long Term
• 3 Canadian Blue-Chip Stocks to Hold Through 2026 and Beyond
• The Railway and Telecom Stocks the Market’s Writing Off Too Soon
• Bank of Canada Hold: 1 TSX Stock I’d Buy Now
• 2 Top TSX Stocks to Buy Today for Long-Term Growth

Fool contributor Aditya Raghunath has no position in any of the stocks mentioned. The Motley Fool recommends TELUS. The Motley Fool has a disclosure policy.