A columnist at a personal-finance outlet has turned an old question of income investing, how much uncertainty one should accept for a fat dividend, toward two Canadian options: the telecom giant Telus, whose yield he still collects while doubting its footing, and Alaris Equity Partners, a smaller trust that lends to private firms and offers a 6.6% payout built on a portfolio of 23 holdings. The essay is opinion, and it is honest about its own bet. It asks readers to weigh the comfort of a familiar name in turbulent times against the promise of a quieter route into private business, and it leav
Motley Fool Pitches Alaris Equity Partners as High-Yield Alternative to Telus Income Stock
Everybody loves a good income stock, but not everyone loves Telus's risk.
Mark
So what is the actual pitch here?
Mimi
If Telus's near-10% dividend feels too shaky, consider Alaris, which yields 6.6% and holds stakes in 23 private companies.
Mark
How does Alaris make its money?
Mimi
It provides capital to private businesses and gets preferred shares that pay dividends. It also shares in the companies' growth through non-control equity.
Mark
And the numbers the columnist leans on?
Mimi
Fourth-quarter revenue and operating income rose 15.9%, and the full year rose 14%. Net book value is $24.79 against a $22.30 share price.
Luke
Worth saying plainly: this is one columnist's opinion, and he owns Telus. He is not neutral, and the piece gives no independent analysis.
Mark
Does he say Telus is a bad investment?
Mimi
No. He says he is buying it, and that he expects it to recover. He just says it is not for everyone.
Luke
Then "lower risk" is his framing. The article doesn't measure Alaris's risk. Private company holdings can be hard to value, and the piece doesn't address that.
Mark
What about the payout ratio?
Mimi
It sits below the 65% to 70% target, which suggests room in the dividend. That is the figure to watch.
Luke
And the Telus recovery is a forecast, not a fact. Neither the turnaround nor the dividend's reliability is established here.
Le Pouls
- Telus's near-10% dividend is tempting, but its heavy debt and an industry in disarray make the payout feel fragile.
- Investors are being nudged to weigh a familiar telecom giant against a little-known trust that offers private-company exposure.
- The columnist frames Alaris as a way to reach private equity, a market usually closed to ordinary income investors.
- Alaris reported 14% full-year revenue growth and a payout ratio below its 65% to 70% target, signs of steady footing.
- The verdict now rests on whether Alaris holds its payout discipline and whether Telus restores dividend reliability.
A columnist at a personal-finance outlet has turned an old question of income investing, how much uncertainty one should accept for a fat dividend, toward two Canadian options: the telecom giant Telus, whose yield he still collects while doubting its footing, and Alaris Equity Partners, a smaller trust that lends to private firms and offers a 6.6% payout built on a portfolio of 23 holdings. The essay is opinion, and it is honest about its own bet. It asks readers to weigh the comfort of a familiar name in turbulent times against the promise of a quieter route into private business, and it leaves the outcome to the payout ratios and dividend records still to come.
A Motley Fool Canada columnist has suggested a path for income investors who admire Telus's dividend but are uneasy about its future. The alternative is Alaris Equity Partners Income Trust, which trades on the TSX as AD.UN and yields 6.6%. The piece is clearly opinion, and it says so in its tone.
The columnist begins with Telus. In his view the telecom sector is in turmoil, and Telus has struggled to protect its margins while carrying significant debt. He credits the company with adapting and working its way back toward growth, but he says the debt and an unproven growth path keep the outlook uncertain. He is not a skeptic, however. He believes the turmoil has created a buying opportunity, admires the plan to restore cash flow growth and the fast-growing Telus Health business, and holds the stock himself, collecting a dividend of nearly 10% while he waits. He also admits it is no sure thing, noting that once dominant companies have collapsed during industry upheaval.
For cautious readers, he points to Alaris. The trust lends capital to private businesses, receiving preferred shares that pay dividends and sharing in profits and growth through non-control equity stakes. He presents it as a rare chance for everyday investors to access private equity, a field usually reserved for institutions. Its 23 dividend-paying holdings give diversification, and he calls the 6.6% yield very generous for a little-known niche name.
He points to 2025 results as proof of progress: revenue and operating income rose 14% for the year and 15.9% in the fourth quarter. The payout ratio sits below the 65% to 70% target, and ongoing buybacks suggest that units remain undervalued, with net book value at $24.79 against a $22.30 share price.
His conclusion is measured. Telus's yield suits some investors, but those seeking less risk may prefer Alaris. What to watch is whether Alaris keeps its payout within target and whether Telus restores the dividend reliability he is betting on.
A Motley Fool Canada columnist has put forward an idea for income investors who like the look of Telus's dividend but not the uncertainty that comes with it: take a look at Alaris Equity Partners Income Trust, which trades on the TSX as AD.UN and currently yields 6.6%. The piece is opinion, and it reads as one.
The columnist starts with Telus Corporation (TSX:T). In his telling, the telecom industry is in disarray, and Telus has been struggling to hold its margins and profitability while carrying a lot of debt. He says the company has had to adjust and pivot its way back toward growth. He credits it with doing a fine job of that, but says the uncertainty remains because of the high debt loads and a growth path that investors still find unproven and unclear.
He is not writing as a skeptic. He says he believes the turmoil has created a buying opportunity. He likes the company's plan to resume cash flow growth, its fast-growing businesses such as Telus Health, and its still dominant place in Canadian telecom. He expects Telus to pivot back toward dividend reliability and eventually growth. He holds the stock himself and is collecting a dividend of almost 10% while he waits. He also concedes that it is not a slam-dunk, and he points out that once unbeatable companies have been reduced to nothing in periods of industry disruption.
For readers who do not want to take that risk, he points to Alaris. The trust provides capital to private businesses. In return it holds preferred shares that pay dividends, and it also shares in the profit and growth of those companies through non-control equity ownership. The columnist presents this as a way for ordinary investors to reach private equity, a market that is traditionally reserved for institutions and high-net-worth investors.
Alaris has assembled a portfolio of 23 dividend-paying private company holdings. He says that spread offers diversification, income, and long-term returns. He calls the trust little known and niche, and notes its 6.6% yield as very generous.
He cites the 2025 results as evidence that the portfolio is performing. Total revenue and operating income rose 15.9% in the fourth quarter and 14% for the full year. Net book value stands at $24.79 per unit, while the stock price is $22.30. The payout ratio remains below the trust's targeted range of 65% to 70%. The company continues to buy back shares, which the columnist says remain undervalued.
His conclusion is that Telus's yield is appealing and suits some investors, but others may want less risk. Alaris is smaller and less well known, and he argues it has distinct advantages. What to watch is whether Alaris keeps its payout ratio within its 65% to 70% target, and whether Telus restores the dividend reliability the columnist is betting on.
Citations marquantes
He believes Telus will pivot back toward dividend reliability and eventually growth, but acknowledges it is not a slam-dunk.— Motley Fool Canada columnist
Envie de l'histoire complète ?
Lire l'original sur The Motley Fool Canada ↗
Economy & Finance