John Zechner Telus Corp T-T DON'T BUY Aug 13, 2024

Mixed view. Cashflow has ticked up a bit. Pretty confident that dividend is safe. Doesn't love the valuation or the growth profile. Supposed to be low growth, but it's really low at about 2% (wants to see it go back to 5%). Yield is 7.2%, payout ratio of 43%.

Hold, don't buy more; collect dividend, and don't expect much more.

Go-to name in the space. The leader. Telcos are boring and defensive, lower beta. So they'll weather the upcoming corrective storm of 1-3 months. Doesn't mind nibbling here, but during weakness he'd be putting $$ to work in the more cyclical areas of the market.

Certain things perform well at different times. Still likes the infrastructure of the Canadian telcos. This name is well-positioned (as are BCE and RCI.B). Ahead on fibre build, doesn't own media assets. Core business looks pretty good. Canadian wireless pricing seems to be basing. Has come off the highs, but you're collecting a nice hefty dividend. So if you're not counting the dividend, you're not looking at the whole story.

Likes it long term. See his Top Picks.

Yield is ~7.3%, pretty high (10-year average is ~5.4%). No doubt about dividend sustainability, grew about 7% a year over last decade. All telcos should see easier earnings comparisons as price war is in the rearview mirror. Peers are distracted with integration. Nice portfolio of non-telecom businesses with faster growth rates. $3B worth of surplus urban real estate to monetize.

Likes how the chart's starting to perk up. Better return than GICs or bonds right now.

Telecom is showing a slow bounce back but growth is slower right now and don't expect fireworks in capital gains appreciation. Cash flow is expected to improve but the debt load is a little higher. She owns it for the dividend of over 7%.

Picked it because she was worried about the economy (still is), and would be happy with the dividend. Same reason she owns it today for the 7.4% yield. Slower growth, but very defensive industry. Price competition has lessened. Better financial position than peers.

The worries over telcos have passed, with worries over Quebecor, the fourth player, entering, and in lower immigration to buy phone plans. Telus pays a high dividend, his favourite among the big three in terms of income alone.

Best telco in Canada. Dividend sustainable, but will also grow faster than peers; proof is in 7% increase this past year. Price war is fizzling out. More financial strength and optionality than competitors, and less distracted by acquisitions. Plans to monetize $3B of surplus real estate. Yield is 7.55%, elevated relative to its 10-year average of 5%.

It's as though you're at an ugly dog show, but there's one that's less ugly. That's Telus. Spending lots of $$ on their network. Raised dividend recently -- nice, growing, relatively secure. Stable business, stable cashflow. Attractive valuation. Not a bad income stock.

In a protected environment. The whole sector will be in trouble if the government opens the door to foreign competition.

It is his favourite carrier for personal use.. There is pressure to open up competition in the space.