Telus Corp (T.TO)

CEO has been a great steward of capital for a long time. Industry has changed, as has the immigration landscape. Debt profile has changed. These things happen. Key will be asset sales -- real estate, towers, other infrastructure. US telcos, for example, have an asset-light model. Freezing dividend growth is the right thing to do. Need to see some discipline in the wireless marketplace for the telco names to turn around. Unfortunately, some brands are cutting prices.

Probably #1 in his list of high-conviction names that have been unfairly punished during tax-loss selling. Cheaper than it ought to be. All things being equal, should be higher in January than now. Trades at 15x for its growth profile and dividend. He'd be more a buyer than a seller.

The discounted dividend reinvestment plan allows shareholders to invest dividends into T’s shares at a discount. However, the discount is expected to gradually go down from 2% now to no discount in 2028. If the discount is eliminated in full now, shareholders may not choose to reinvest, which may put further pressure on the company’s share price. DRIP dividends of course do not require cash and T is trying to maintain flexibility. 
The risk of a dividend cut is moderate, although the dividends in the trailing twelve months are covered by free cash flow ($1.6B vs. $1.9B). The net debt/EBITDA level is quite high, standing at 5.5x — the highest levels. There is a possibility that T’s management cuts the dividend to pay down debt faster, but it is quite unlikely for now (could change). For now, T expects to reduce debt levels by growing earnings organically. The company has been in a huge capital investment cycle over the last few years. The market likes today's news. We would be OK with T as a 'slow accumulate'. There is still work to be done here, but the company recognizes its issues, at least. 
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Challenged recently. People are a bit nervous about the dividend being cut. Yield is 9%, which seems high. Business is stable, but growth has slowed. Ongoing pressure on cashflow, so dividend could be at risk if conditions worsen. Aiming to diversify revenue, which she sees as improving long-term growth prospects. Value 9/10.

She remains cautious. At 50% of a TFSA, that's a heavy weight. But she'd ride it out and continue to hold.

He's seen this story so many times when an entity commits itself to a growing dividend. His rule of thumb is that once the yield gets above 8%, there's a cut coming. As for the payout ratio, it's over-distributing. Market's telling you dividend will be cut, and that makes sense. 

We can get too enamoured by dividends sometimes, and there's no free lunch. Dividend can be high, but then the stock price is down. Yield is 9%.

The telco sector is unloved now.  ZUU gives you better income and a more diversified way. Telus could face more selling during tax-loss season, but you can accumulate on that weakness.  It'll be a few years before any telco is a fundamental buy.

All the telcos were building out their 5G networks and borrowed a lot of money, thinking customers would pay up. Instead, they went to the el cheapo Koodos and Fidos of the world. That's really hurt. Remember the 3 D's of investing:  Debt Doesn't Disappear.

Revenue growth has been flat. Has to consider more asset sales. In his opinion, FCF is not covering the dividend, yet recently increased it. If asset sales go through, should have enough to cover dividend. Tough business right now.

He owns, so is right in there with the investor. JPM says Telus can't sustain its dividend, and market really punished it on that news. Next couple of years, capex won't be as robust as in past few years (going from ~17% to ~12%). So can more than cover dividend for next couple of years. Raised dividend the other day. 

Underlying business is not a great growth business, but still has some legs. Yield is 8.95%.

Hard to recommend selling a dividend-paying stock to buy a tech ETF (especially when that sector's extremely overvalued). A diversified approach is the better way to play the sector. Take a look at ZWU.

The most stable of the telcos in the Canadian market. As immigration growth has slowed, net subscriber growth has come in quite a bit. Don't expect it to return to previous price or valuation. Wishes it wouldn't do all those side projects. FCF inflection coming, as fibre buildout slows.

OK if you need it for the yield, but not an attractive 10-year hold. When push comes to shove, he's not interested.

One of Canada's top telco providers. Low churn rate, strong consumer loyalty. Working on its balance sheet; selling non-core assets to speed up debt reduction. Likes the dividend for all investors; remains strong and stable and a key part of its return profile. 

Wireless growth slowing a bit, so stock's fairly valued. Don't put everything you have in it. Fundamentals rate 6/10, but 9/10 on value. Yield is 8%.

The question was on both companies in the telecom sector. BCE did an acquisition in the US and have to prove out those numbers as well as get the leverage down. Telus didn't fall on the same hard times and the dividend is solid. Wireless is starting to turn better and landlines too. Three to four quarters should show unproved financials. Both have turned the corner.

Not setting the world on fire (but other stocks do that). Own this for its dividend and dividend growth. Share price is at a discount. Price war ended up being a zero-sum game, but competitive intensity has abated. Profits are linked to population growth, and that's slowing due to immigration policies. 

Likes its array of non-core businesses and plans to monetize urban real estate. These are unpriced catalysts that could move the stock price. Yield of 7.8%, pretty juicy.

His firm buys market leaders in sectors that are being positively revalued. Multiple in this sector has been contracting for a long time. Big question is where does revenue come from? Very hard to turn around a stock in a weak sector that's underperforming. 

If you can't rally in a bull market, what happens in a bear market? Probably gets worse. Stay away.

Whole sector struggles on its growth outlook. Good cashflow. Margins hit by recent price competition. Premium valuation in the space. An appropriate space for retirees looking for income. He chose RCI.B.

Up ~11% YTD. She recommended this defensive play when she anticipated softness in the stock market. (If she liked it a year ago on concerns of economic weakness, she definitely likes it now ;) About to start its copper decommissioning. Capex should come off in next few quarters. Yield is 7.6%.