Telus shares closed at $18.84 on the Toronto Stock Exchange on Thursday.

Telus Corp. T-T shares sank more than 5 per cent this week after a downgrade by JP Morgan after concerns over the sustainability of the company’s dividend growth, heightened competition from rivals and its capital allocation strategy.

On Tuesday, JP Morgan analyst Sebastiano Petti downgraded Telus from a neutral to an underweight rating, and lowered its price target for the telecom from $22 to $19.

After Mr. Petti’s note, the stock dropped 5.3 per cent to $19 on Tuesday. Telus shares have continued to decline slightly since then, closing at $18.84 on the Toronto Stock Exchange Thursday.

“While Telus has strongly signalled its intent to maintain a dividend growth strategy, we believe the current dividend yiel

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