Investors hoping for bigger gains this year from utility stocks like Telus (Telus Stock Quote, Chart, News TSX:T) have so far been disappointed. But you might actually be barking up the wrong tree, says Stan Wong, Director of Wealth Management at Scotia Wealth, who argues if you\u2019re buying Telus, it\u2019s for the dividend. Communications and information technology company Telus, like its Canadian telco peers Rogers and BCE, has had a bit of a rough go in 2020. The stocks have yet to see a full recovery from the COVID-related market drop of earlier this year and in Telus\u2019s case it\u2019s been stuck around the $24-mark for months now, putting the year-to-date return at negative two per cent. That\u2019s in contrast to much of the Canadian tech landscape, which has done well this year. The S&P\/TSX Capped Information Technology Index, for instance, is up 40 per cent for 2020 and that\u2019s compared to the S&P\/TSX Composite Index which is pretty much at even for 2020. But investors shouldn\u2019t worry about owning Telus, said Wong. \u201cIf you look at telecom stocks both in Canada and the United States they have been somewhat stagnant on a relative basis. I think the investment market has really opted for more of the growth-oriented stocks, the Microsofts and the Facebooks and the Apples of the world, over the dividend payers which are the telecom stocks,\u201d said Wong, speaking on BNN Bloomberg on Thursday. \u201cWith that being said, I think the runway for growth in Canada for the wireless industry is still very, very strong,\u201d Wong added. Telus delivered its third quarter financials last week, having added 198,000 new wireless customers, compared to 193,000 net additions a year earlier. That included 111,000 mobile phone net adds, which was better than expected (analysts had estimated 84,000). Revenue was also above consensus, coming in at $3.98 billion compared to $3.70 billion a year earlier and better than the Street\u2019s $3.82-billion estimate. But profits came in a little lighter than expected at $356 million or $0.28 per share compared to $458 million or $0.39 per share a year ago and compared to analysts\u2019 consensus guess at $0.31 per share. Management emphasized in its quarterly commentary the company\u2019s resiliency during a challenging time for telecom companies, with President and CEO Darren Entwistle saying, \u201cTELUS once again achieved strong operational and financial results in the third quarter, characterized by excellent execution, resulting in industry-leading and record high customer growth of over 277,000 net new additions.\u201d \u201cThis accomplishment, realized against the backdrop of an unprecedented operating environment as a result of the global pandemic, reflects the effectiveness of our world-leading performance culture, underpinned by our highly engaged team,\u201d he said. Telus said it plans on delivering flat EBITDA growth for the year, as opposed to its guidance at the beginning of 2020 which called for seven or eight per cent growth. Still, the company said it expects free cash flow to come in at the lower end of its original call from February for between $1.4 and $1.7 billion. Wong said, \u201cOne thing to keep in mind about TELUS is it\u2019s more exposed than BCE and Rogers to Shaw's move into the wireless space, so there\u2019s a little bit of concern in that space. And, of course, there are secular trends on the negative side with television and landline phone subscriptions so that\u2019s a bit of a headwind for TELUS and the economy, and the other incumbents,\u201d he added. As far as the dividend goes, at a five per cent yield Telus is between Rogers at 3.35 per cent and BCE at 5.8 per cent. Wong said Telus\u2019s dividend isn\u2019t going anywhere, either. \u201cIf you look at the valuation, Telus is trading at 9x enterprise value over EBITDA and that\u2019s near ten-year highs,\u201d Wong said. \u201cBut for an investor who\u2019s simply looking for income and steady growth, you\u2019re getting a five-per-cent dividend and that growth rate and dividend yield should increase monetarily over the next few years.\u201d \u201cSo, for an income investor I think Telus is a good stock. For a growth investor, you might want to look elsewhere,\u201d Wong said. Telus recently announced the $1.2-billion acquisition of Massachusetts-based artificial intelligence company Lionbridge AI which will become part of Telus International, the company\u2019s digital customer experience business, which Telus plans to spin out as a public company. \u201cWith the addition of Lionbridge AI, TELUS International will further progress its penetration of the fast-growing new economy services market that will enable our team to support important AI applications as demand for high-quality, multilingual data annotation continues to increase,\u201d said Entwistle in a November 6 press release.