Telus Corp (T-T)

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.

He owns this as well as BCE. It is a rock solid core position with a good dividend return. It is reasonably strong but there is pressure on pricing mobile phones. He doesn't expect much growth in the next few years but there could be some with immigration.

Coin flip. Goes back and forth as to which is better at any point, based on short-term metrics.

Remains in a downtrend, and we're seeing it in all telcos. Function of debt load and higher interest rates. Will especially come under pressure if rates go higher next year. Typically, these names clear off some debt and come through the tough period stronger and better than ever. But right now, it's a challenging time. Likely more downside.

Benefiting slightly from expectations of falling rates. Still below 200-day MA, which is a bit troublesome. A lot of the other dividend payers in Canada have done a bit better than telcos. Dividend yield of 7% is high, but pretty secure, with a 6% growth rate going forward. May need to sell assets as BCE did.

Long downtrend. Great dividend payer, but at some point you have to compare it to the capital being lost. Chart showing a bit of a higher low, bodes well short term. 

Don't want it to break $20.50 (or +/- 3% off that); if it does, better places for your money. That level will be tested, and you can decide what to do then.

Telco sector not popular lately - but owns shares. Believes is a good dividend - reliable for the long term. Extremely well run company over the long run. Would recommend holding for the long term. Demand for services will only rise with increasing population. 

He likes telcos. The best stocks in the US this year have been telcos. Same here. There's been a 2-year overhang with telcos in Canada with a fourth player entering, but valuations have fallen at 6-7x operating cash low, great dividends and growth potential. Will benefit from AI implementation. But he prefers Rogers for growth and BCE with its higher dividend. So, Telus is third in this group.

He'd buy today, but remember that these are tough businesses over the medium- to long-term. Doesn't mean you have a long-term, high-revenue-growth business.

Telcos have lagged other yield sectors, and this creates an opportunity. He's buying all the telcos. This is his #1 choice in the space. Well managed, reasonable payout ratio. And that's why it's at the top, with a higher valuation.