The Globe and Mail reports in its Tuesday edition that on July 31, Telus announced in its second quarter results that it is slashing its dividend by 55 per cent. Columnist Gordon Pape writes that the market had been expecting a cut. The company said the move is expected to generate approximately $2.7-billion in cumulative cash savings through 2028. The money will be directed toward debt reduction. The share price, which opened the year at around $18 but has drifted steadily down since, fell yet again. It closed last week at $13.53, down 22 cents on Friday. The shares yield 5.5 per cent at the new dividend rate. The move comes less than 15 months after competitor BCE cut its payout by roughly the same percentage. Chief executive officer Victor Dodig said Telus will focus on three near-term strategic financial and operational priorities to improve performance and capital allocation. RBC responded to the news by cutting its ranking on the stock to sector perform with a target of $15 and downside potential of $11. "We got it wrong," RBC said in a note to clients. "We are downgrading the stock, and we will look for more attractive and/or timely entry points." Despite the lower price, Mr. Pape does not recommend buying.