Telus Corp (T.TO)

She really thought the bottom was ~$18. (She was wrong. Sigh.) Thinks dividend will be cut, though they probably don't actually need to. She's expecting a "kitchen sink" quarter, so she didn't make this a Top Pick.

Likes the underlying businesses. Really good job pivoting toward AI and data centres. Further ahead on capex for fibre to the home. Going to start selling its copper in the ground.

At the end of the day, barriers to entry are really high and it has defensive characteristics of critical infrastructure. History has shown that when a sector's out of favour like this, it's a good time to buy.

The telcos spend a lot to get into digital as Ottawa keeps phone rates low. But dividends are high, though Bell has cut theirs and the rumour is that new management (next week) will eventually cut. The Telus dividend is 11%, so if they cut it to 6%, it's still competitive. He owns a bit of Telus at $19. Thinks he will be okay in the long run. Telcos are no longer a growth industry.

Shareholders are running away. New CEO is going to clean house and probably cut dividend (likely in half). That would solve problems with payout ratio and balance sheet. If you buy here, yield is ~11%. Building sovereign AI and investing in it; market's concerned about this outlay of capital (especially with rates moving higher). 

Lots more upside. Trusts this company. Still decent 13% EPS growth, trading ~15x. Likes it here. Sell a put to oblige yourself to buy it lower if you're too afraid to buy at today's price.

Yes, buy. This doesn't have much downside. This is good long-term. A new CEO will change the management team. The CEO, from CIBC, makes him confident. Even if he cuts the dividend, Telus still yields 4-5%. The stock should be in the mid-20s. There is a path back to it, but it could take time. Telus is a very long-term hold. It's already pretty cheap.

Biggest question to ask yourself is why you own it? No growth in this industry. Less immigration = less growth. That overhang has hurt the entire space. If you own it for income (and a lot of people do), just sit tight. Just don't have too high a weighting.

For his clients who want income, his preferred name is RCI.B.

Space has been tough, non-falling interest rates haven't helped. Not a lot of media content to be the diversifier that it is for other names. Below 200-day MA, which is trending lower. Yield is 10.2%, probably not sustainable. There's a projected decline in dividends over next 3 years, and only 1.5% growth.

Telus is paying out all of its FCF, and maybe then some, in dividends. You have to be OK with that. And who knows whether the new CEO will cut that dividend?

Both have come down a lot. You could make the case to buy these beaten-down companies to get the yield, and that's not a terrible idea. For the very long term, at these valuations, probably not much downside. Question is: How much upside? If inflation does come down and central banks start lowering rates again, companies like these may get a bid.

Prefers, and owns, RCI.B.

In the midst of Canada's technical recession, you have to think about what kind of investor you are. A basket of telcos can be used as a bond proxy, as it'll provide income in your portfolio. Income can then be used to protect you defensively on the downside, or to redeploy into growthier names. It gives your portfolio some ballast.

It's an income story, not a growth story. Doesn't see much problem if you hold it longer term. If Telus cut its dividend, he'd probably buy. 

Owns this for a while and wants to exit it. Telcos suffer from lack of population growth and intense competition. The telcos have little growth, but the dividend is attractive. 

Heavy debt from network buildout, and concerns about dividend. Last quarter was steady, revenue roughly flat. FCF jumped 19%. Fibre and 5G build is winding down, so capex is being cut. May monetize Telus Health to pay down debt. 

Analysts are consistently too optimistic. Likes the company, but stay away for now. Prefers QBR.B.

Lots more capital at risk, but implies a lot more upside potential. Likes this name, though it's in the "have-not" area right now. Anemic wireless, yet still 13% EPS growth at 14x PE for 2028. Math still works. Beautiful dividend (but he expects a cut with the new CEO) -- stock should react positively.

She owns it for the dividend, and Telus has the most turnaround potential among the Canadian telcos. You can't go wrong with any telcos, which aren't getting any love now. They are undercutting each other are prices. She likes telcos for defence and yields, though is not high-growth.