Telus Corp (T.TO)

Telecoms? Rogers is an interesting name. He owns BCE instead. A push for lower cell phone rates along with greater investment in 5G networks are key headwinds in this sector. Telcoms will face a lot spending to build up 5G, which will impact the financials for the next few years. He likes the dividend they pay, however. If your time horizon is long, then holding is fine.

He likes it on a longer term basis because of their diversification. They have been quietly investing in these businesses and not getting a lot of credit. Their spending on fiber to the home is much more advanced than BCE-T's is. They don't own a content business.

BCE vs T Both operate in a regulated industry that allows above normal margins. Consumers are cutting cords and there is push back on cell phone bills. You are probably better owing a US telecom company instead. He prefers Shaw or AT&T.

A lot like the other telecoms there is relatively low growth, T-T pays a good dividend. He owns BCE-T instead. Valuations are on the upper end of the band for both these. You could expect 3-5% increases in share price plus the dividend. Yield 4.6%

Great company for the long term. If you are looking for more upside there are different places to look. Vodafone just announced they are going to spin out tower and the stock jumped almost 10% today. Would recommend AT&T if you are looking for more yield. Generally the dividend yields on Canadian telcos is quite low relative to other parts of the world.

Telus vs Rogers? He prefers neither. The valuation is too rich. He sold his Rogers around $72. He would prefer Telus as it is more diversified and does not have the struggles of content issues. He would actually buy Shaw instead as they enter the wireless space. He would buy all three on weakness, but enter Shaw today.