Telus Corp (T.TO)

The whole sector has been under fire from increased competition. Rogers holds a lot of debt. He owns Quebecor and Telus instead; the latter had tamed their debt and generate a lot of free cash. But Rogers keeps buying stuff over and over; will these media assets pay off? He prefers companies with less debt and more cash flow. The jury is out with BCE about sustaining their dividend (are selling assets to pay down their debt). Quebecor is his top pick in telcos: the only one that's made a good return this year, though Telus is a better long-term pick because of their big cash flow that will let them pull various levers. Don't buy Quebcor or the dividend, but for the growth.

Company is not founder led/owned - no skin in the game with this company. Would not consider investing due to this. Better options in the markets for investors. 

Telus has seen decent momentum in the recent months as the Bank of Canada has begun cutting rates, further helping to support highly-indebted telco names. It has a strong yield of 6.8%, and with bond yields declining, investors will likely seek out high-dividend paying stocks in light of this. We think it can see positive momentum from here, but there may be some chop along the way. 

The utilities sector should also benefit from declining rates, and we think this is an attractive area in the medium to long-term.
Unlock Premium - Try 5i Free

Irreplaceable assets. Defensive. Even with a recession, people aren't going to cut cell phones or internet -- needs, not wants. Hammered when rates went up. Lower rates have not had an impact yet due to competitive environment, but that pricing environment won't last forever. Pain in the short term, but you're still collecting that nice dividend. Yield is 6.9%.

Very capital intensive, but demand for product remains high. Current share price presenting value. Would recommend a small position. Also good for yield oriented investors. 

On most income stocks, you're just there for the dividend. He needs a bit of growth as well, as it helps your total return. He's wary of telecom right now. Price wars are not going to be short term. Earnings growth will be weak.

Telcos have acted poorly, so he's become cautious here. They have a higher PE and they used to earn this premium valuation because of ancilliary operations had growth, like technology. Their Telus International is a disaster. Telus faces more competition. BCE is very cheap and Rogers will grow after buying Shaw, so Telus is ranked third.

Not good value. Doesn't own, wouldn't buy. Financial performance declining. Earnings misses. Needs to stabilize revenue, improve profitability, and reduce debt load.

It has been a poor performer in the past 12 months but is pretty well positioned now with good assets over the long term. Free cash flow should start to expand so it is good to buy at these levels. The dividend is sustainable.

A bit cleaner financial shape than BCE. Dividend secure. Tough regulator, and the whole sector's looking for some relief. Sit with it and collect the dividend. If we haven't bottomed out, we're probably pretty close. Yield is 7.5%.

Looking ahead 5 years you'll have collected a good dividend, probably gotten some growth out of the stock, and there's your double-digit return. 

85% revenue from services, 15% from hardware. Usually trades at a premium to peers due to higher growth and further ahead in fibre to the home. Should benefit from immigration. Most diversified of the Big 3.

Not as much leverage on BCE's balance sheet as peers. Shares have contracted to a very attractive valuation, plus a 9% yield. He'd choose BCE at this point.

He doesn't see the same buying coming in as with BCE.. It is making new lows - wait until it is above $23 to buy. Follow the 50 day moving average.

Favours Telus for the long run. More consistent performer for dividend growth. Share price over 10 years has been steadier. (He's based in Western Canada, so he may have a bit of a home-team bias ;)

But if he had to buy one today, he'd go with BCE. Trading at a 10-year low, appears oversold. Yield is about 8.5%, and looks secure -- reducing capex, and it could introduce a DRIP program (which would give it a healthier payout ratio).

Sector's out of favour, but good business, oligopoly, very profitable. Much prefers Telus and QBR.B to BCE. Telus has lots of free cashflow coming, will be able to raise dividend significantly over next few years. QBR.B is the fastest-growing telco.

Great dividend. Not much growth over the long term. Good for yield seeking investors. Current price is a good place to buy.