Telus Corp (T.TO)

Pays a good yield, but it's like many telcos. He prefers T-Mobile for better growth.

Editor's Note: The question was on his preference between T and CU. Total revenue at Telus was up 16% and the capex is down which is good. It is pricey at 25X. CU is a low risk utility and has a very nice dividend and price. Since it has low growth he prefers Telus.

Utility style business with mediocre returns on capital (single digits).
Most of returns achieved through dividends.
Limits to how much company can grow.
Defensive stock - safe for investors. 
Better names out there for capital appreciation. 

Telecom sector is good exposure for income investors. BCE has the higher yield, close to 6%. Telus yields about 4.5%. Both increase dividend each year, generate free cashflow, build out 5G network. Immigration will be positive for the sector.

Believes inflation and rates are going to be higher for longer (HFL). Historically strong dividend payer. Will move up more slowly than others. Downtrend from 2022-23, and you can see the chart taking a turn and pushing higher. Likes the telcos here, and Telus has been one of the leaders.

The question was on Telus or TD Bank - a difficult question since they are completely different companies. They are both great companies and he owns both. Banks and telecoms, especially Telus are both at attractive prices. There is maybe more growth with Telus so it gets the edge.

Extremely well managed, stable, branching out into various fields. Lots of room for some growth down the road. As FCF increases, expects dividend to increase well over 5% per year over the next few years. Nearing tail end of cycle of building out fibre to the home, so FCF and the stock's multiple will increase. Yield is 5.18%.

It would be his top pick in the telco space. It has done some interesting things including investing in healthcare. Also it spun off Telus International. The CEO has been buying more shares.

Sector is low beta (volatility).
Series of lower stock prices suggests down trend.
If stock breaks down trend, good time to buy.
Not a good time to buy. 

Valuation high right now, but offering good long term prospects.
As economy recovers, demand for services will increase.
Financials very strong.
16% earnings per share growth predicted. 
5% dividend yield is very strong.

Great yield of 5.2%. Trading at 25x earnings. Great job on wireless, but also on growing other businesses like TIXT and Telus Health. Management's undervalued, executes very well. Great story. No media division, just telecom-based. 

Amongst the telecom players, BCE has its 6% dividend, RCI.B has a 3% dividend but perhaps a more robust growth rate and more diversified income stream. Telus is in the middle with a 4% yield. Doesn't know if it has the growth trajectory to give you superior returns. Sure, it'll be fine, but the other two are better bets.

The top telco success story in Canada. They spun out their international business last year. They pay a good dividend yield. They achieved over 100,000 new subscribers last quarter. Canadian telcos enjoy an oligopoly.

A good runway for Canadian telcos. Shares are down 10% in the past year, because rates are moving higher. But rates will calm and even decline later this year. Telus's dividend will grow. Likes this stock. Good cash flow and steady dividends.

Stable company. Rose last year on hype surrounding investments in agriculture and healthcare, but he likes those investments. Telus is using its tech know-how to expand opportunities in other business-use cases. Core business looks good. Further ahead than BCE on fibre build, capex starting to come down, free cashflow starting to rise. Dividend growth at 7-8% annually is best in sector. At these levels, buy at full weight. Yield is 4.89%.