Telus Corp (T.TO)

Of the big 3 telcos, cleanest "dirty shirt" in the pile. Dividend growth this year, subscriber growth still positive. Moving from a period of heavy capital expense for 5G, to a time to stick to the knitting and long-term playbook. Yield is ~8%, which will be in demand as interest rates fall, and safer than other telco names.

In his dividend growers mandate, bought late last year. Best telecom in Canada, greatest financial strength and flexibility. Best dividend growth prospects among peers. Yield's about 8%. Price competition has leveled off. Earnings should improve. Good portfolio of non-telecom businesses. Catalyst-rich.

The chart shows a downtrend which is hard to find. A rally or breakout is possible, sure. But the chart is making lower highs and lower lows. He is not bullish.

Would recommend buying shares on share price weakness. Dividend yield suggesting value in current share price. Assets very strong with durable brand name throughout Canada. 

Still adding new money. He uses a name like this to offset higher beta/risk names like CSU and BN in client TFSAs. Due to price competition, telcos haven't grown. Being further tested due to less immigration. Flipside is that the 6-7% yield and a 2-3% price gain would give you a 10% total return.

Problem is all the leverage taken on to build out 5G, but not getting an economic return from it.

You always need a portion of your portfolio to generate income, and telcos now look attractive. The challenge is limited growth. He owns a little Telus.

The whole space is getting hurt by pricing pressure from the current 4 players instead of the previous 3. CRTC's ambiguous roaming rules haven't helped. The story has been population growth, and now we have less of that. Still, this is the one to bet on:  best run, very disciplined, good dividend (doesn't think it will be cut). A good opportunity here with tax-loss selling.

All the telcos are pretty good buys at these levels, but this one's probably his favourite. See his Past Picks.

The one reason to own a telecom company is for the income. If you're not, there are much better growth ideas out there. Probably the best telco operator, but in the end it doesn't matter because price competition will take years to filter through. All of them will be challenged on profitability.

Not a growth industry, though Telus has made some unique investments. All you're hoping for is to collect the dividend and get a rerating on the multiple, which could be many years out (and may not come). If you don't need the income, look elsewhere. Yield is 8%.

Very well managed. Still able to grow dividend because of its free cashflow. Competition in Canada will stay intense but rational.

On an earnings basis the payout ratio is above 100% but it will have more free cash flow to cover the dividend. Another 3 years of a 7% dividend is very attractive and more people will want it as interest rates come down.

Whole space hasn't done well. He'd focus on Telus, better growth potential. Painful decline is now at least basing.

BCE is close to reaching a bottom and should do OK. 

Added just a couple of weeks ago. Interest-rate sensitivity has turned from a headwind to a tailwind, as both central banks in US and Canada have started cutting rates. Canada will have more cuts soon, fast, and deep in the coming 3-12 months. 

Will benefit from fund flows, as GICs will now be earning 3-3.5% instead of 5-5.5%. Dividend is not only sustainable, but will likely grow faster than the other telcos. Last month, increased dividend by 3.5% on the heels of previous 3.5% increase back in March. Yield is 7.3%.

Better financial strength and flexibility than peers; its 2 rivals are distracted. It holds a more interesting (and small but faster-growing) collection of non-telecom businesses -- virtual healthcare, employee benefits and consulting, home monitoring, etc. Interesting catalyst with stated intent to monetize ~$3B of non-core urban real estate into high-density residential housing.

Tough to be a telecom in Canada. CRTC is often overbearing. Capex is not bad in the concentrated GTA, but increases substantially as you go across our big and somewhat underpopulated country. BCE is in the same spot. Hard to hold over the next little while.

Reasonably good quarter relative to peers. Dividend is up, which is very important when you're investing in the space. Price is OK, and yield's still pretty good.

Is at good prices now, but it may take years for these stock to turn around given the regulatory environment and sentiment. The assets are good. Note that they are close to de-commissioning their copper assets, which they can sell (old landline phone assets). You may be owning or accumulating this for years, then it pays off.