Telus Corp (T-T)

At these levels, this whole area is a buy, and this name is a very strong buy. Probably washed out, multi-year lows. Culprits for that are too much debt, imperfect CRTC decisions, increased competition, and less immigration. Yield is 7.8%, and safer than BCE's.

Valuation ~15x is much more reasonable than it's been in years. 2025 won't be great, but beyond that he's modeling decent growth around 13%. Asset sale of towers is a really good catalyst to right the balance sheet. Better use of capital than to have it tied up in that kind of infrastructure.

It was doing well, until people started questioning their dividend last week. But Telus raised their dividend last November, and they know what they're doing with their future business. This has gotten much cheaper in recent months. If the rest of the market is negative, this and BCE could look a lot better. Trades cheaply, pays dividends and works in a protected industry.

Chart shows a neckline ~$22.50, and it's trying to break that. You'd probably see some of the momentum indicators hooking up on the nice move. Struggling a bit at that $22.50. If it breaks out, very good news. He wouldn't buy until it broke out.

He owns some but is not keen on the telecom sector. Should be OK with its investment in fiber optics and more free cash flow. He is comfortable with the dividend.

Owns only a little Telus and telcos. The dividend is safer than BCE's, but less than Roger's. Telus should be okay, because they invested in fibre optic to the home before others. So, will be lower capex and operating expensives, and more cash flow. Is comfortable with their dividend.

Not high-growth. Balance sheet isn't clean. And there's political pressure to open up the teleco market. There are safer places.

The area's been hurt badly by competition of 4 carriers, lack of population growth, increased cost of capital. Dividend is probably safe. Well-run company. Buy great stocks when they're down. Can't guarantee it won't go lower. Consider adding an options overlay strategy.

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%.