Telus Corp (T.TO)

Benefits whether Shaw deal goes through or not. Either Rogers has wasted a year spinning its wheels, or there will be fewer operators and Shaw was a stiff competitor. Great place to be. Issued debt, so they are cashed up, but this put pressure on the stock. Nice entry point, with still room to move. Yield is 4.68%. (Analysts’ price target is $29.44)

T vs. BCE He'd go with BCE if he had to choose. Telus is more wireless based. BCE also includes media aspects. BCE is a more conservative play, with a dividend of just over 6%. Telus' dividend is just under 5%. When interest rates move down, BCE tends to do better. When interest rates move up, Telus tends to do better. With interest rates tending to moderate this time of year, and markets being a bit softer, he'd go with BCE.

Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. The company announced a large share sale and this is probably why the share has dropped. Shares are below offer price which should be temporary. A reasonable response to a large deal. Unlock Premium - Try 5i Free

The Rogers-Shaw deal will rotate money out of Shaw into peers like Telus. But what will happen with this deal? Will it be approved? Will there be clauses, if approved? The recent sale of Telus International added cash to their balance sheet. They can grow their dividend at an outsized rate. It pays a good dividend and Telus will attract more capital from the Shaw deal. (Analysts’ price target is $28.98)

Likes it here, but he'd choose it behind Shaw/Rogers and BCE. Likes the unusual diversification. Valuation is higher than the group. An underappreciated, cheap sector, with growth going forward.

Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. Though the Rogers-Shaw deal makes them stronger, the deal essentially eliminates a competitor. The oligopoly is even stronger. It is not overly negative for the incumbents. Unlock Premium - Try 5i Free