The Canadian Investor · Braden Dennis & Simon Belanger

3 Signs a Dividend Cut Is Coming and Canadian Bank Earnings Kick Off

December 4, 2025·47 min·4 clips

Telus pauses dividend growth after a critical article, exposing deeper issues in Canada's telecom industry.

Simon Belange and Dan Kent of The Canadian Investor podcast analyze recent financial news affecting Canadian markets. Telus announced a pause on its dividend growth and plans to phase out its dividend reinvestment plan, citing a free cash flow shortfall. The hosts note Telus's mobile subscriber growth has stagnated around 10 million, and average revenue per user has declined from $61 to about $56. GoEasy's CEO Dan Reese is stepping down due to a medical issue, with Patrick Enns set to take over as the company's stock has fallen from over $205 to around $130 per share. Allied Properties REIT cut its monthly distribution by 60%, from 15 cents to 6 cents per unit, following clear warning signs. Those signs included an AFFO payout ratio exceeding 100% and an FFO payout ratio reaching 96%, while net debt to EBITDA worsened from 7.9x to 12.3x over two years. Occupied area in its properties fell from 90% to 84%, and rent increases on renewals have recently been flat or negative. Laurentian Bank is being acquired in a split deal by National Bank and Fairstone Bank at $40.50 per share, a 20% premium, with all Quebec branch employees required to reapply for their jobs. Scotiabank reported a 13% revenue increase and 23% earnings growth, with its Global Banking and Markets segment earnings up 50%. Its Canadian banking earnings grew only 1%, partly due to increased provisions for mortgage stress in the GTA. Scotiabank's allowance for credit losses as a percentage of gross loans has risen from 0.72% in early 2023 to 0.96%. The international banking segment has a much higher provision ratio of 1.44% compared to 0.44% for Canadian banking. The hosts emphasize that high-yield investments require scrutiny of payout ratios, debt sustainability, and underlying business weakness. They present a case study of an investor who lost $75,000 in a month on Allied Properties after being attracted by the yield. The tone is conversational and educational, blending news recap with analytical commentary on financial metrics. This episode is ideal for Canadian investors focused on dividend stocks, bank earnings, and real estate investment trusts. Listeners seeking speculative growth stories or international market analysis might find less value here.

As heard by us

A plainspoken look at dividend risk, Canadian banks, and the numbers that tend to warn first.

The Canadian Investment Podcast uses a busy market week to move from Royal Bank and Scotiabank to Laurentian Bank and GoEasy, then into payout ratios, debt levels, and interest coverage. That keeps the episode practical without overcomplicating it.

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Why you'd press play

Get the first read on Canadian bank earnings, plus the dividend signals that can show up long before a cut.

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