Brian Madden Telus Corp T-T BUY Jun 25, 2025

Owns it just for the yield. As long as the stock doesn't go down, he doesn't expect that much from it. Should be able to clean up the business and the balance sheet, and that's happening. Seems that it can increase pricing on cell plans incrementally. Telco that's the most transparent on what's going on.

Overvalued at $30, undervalued at $20 -- that's her trading range. Q1 revenue up, free cashflow up 22%. Yield projected to grow annually 3-8% through 2028. Doesn't see dividend being cut. Steady earnings, strong consumer retention. One you don't have to worry about.

Dividend's safe, doesn't see any risk. All telecoms have been under tremendous pressure for the past couple of years. Did better than the others because of ancillary businesses. He's become positive on the sector. He owns all the telecoms, likes to play the laggard, this is his smallest position of the group.

Best telecom in Canada. Yield of 7.4% is secure, but quite elevated relative to its 10-year average. Yield alone is not enough; feels it'll grow at a faster pace than peers, validated by company actions. All players should face easier earnings comparisons in wake of the detrimental price war. Financial strength and flexibility. 

Interesting, but growing, collection of faster-growing non-telecom businesses such as healthcare and benefits consulting. Surplus urban real estate (obsolete central switching stations) can be monetized through redevelopment (not to mention the $1B that could be realized by selling the copper for scrap).

It's time to step back into telcos. Dividends are sustainable. He owns all 3 Canadian telcos. Share prices have bottomed, and he expects margin improvement. Costs have been slashed. Is partially optimistic, because shares have been so beaten down, and yet the industry isn't going anywhere. There will be some growth going forward. Is bullish on telcos. BCE's strategy in the US (buying a US company) will generate reasonable value. Telus is the faster grower and has made good moves outside telecoms to create value. Rogers is more of a question mark, including their sports holding, but is worth a ton of money (the value of sports teams is huge).

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%.