Dividend investors often ask a practical question: how much capital is required to generate a meaningful level of passive income from a single stock? For those considering telecom giant TELUS Corporation, the numbers are surprisingly clear.

TELUS currently pays an annual dividend of about $1.67 per share, which translates to a dividend yield close to 9% at recent prices. This unusually high yield has made the stock particularly attractive to income-focused investors seeking strong cash flow from their portfolios.

The math behind $10,000 in annual dividends

To generate $10,000 in yearly dividend income, an investor would need approximately 5,988 shares of TELUS. This figure comes from dividing the desired annual income by the company’s annual dividend payment per share.

At a share price around $18.64, building that position would require an investment of roughly $111,600. While that is a sizable amount of capital, the resulting dividend stream could provide a significant source of passive income for long-term investors.

Why income investors watch TELUS

One reason TELUS attracts dividend investors is its ability to generate consistent cash flow. The telecom company produced record free cash flow of about $2.2 billion in 2025, representing steady growth over the past several years. Management expects free cash flow to increase further, with projections of roughly $2.45 billion in 2026.

Strong cash flow is important because it supports the company’s ability to maintain dividend payments while also investing in growth initiatives.

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Dividend strategy and future outlook

Although TELUS has historically increased its dividend regularly, the company recently decided to pause dividend growth temporarily. This move is part of a broader strategy to reduce debt and strengthen the balance sheet. Once leverage targets are reached, management expects dividend growth to resume in the future.

Meanwhile, the company continues expanding into areas such as digital services, health technology, and artificial-intelligence-related infrastructure. These businesses could provide additional growth drivers over the long term.

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For investors aiming to generate $10,000 in annual passive income, TELUS offers a clear path—though it requires a sizable investment. With nearly 6,000 shares and over $110,000 invested, shareholders could achieve that income target through dividends alone while benefiting from exposure to a major Canadian telecom provider.