Telus Corp (T-T)

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.

We think T is fine for income.  However BCE is taking its restructuring efforts seriously and moving fast.  With its better business diversity we would still lean towards BCE.  
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The whole sector has been under fire from increased competition. Rogers holds a lot of debt. He owns Quebecor and Telus instead; the latter had tamed their debt and generate a lot of free cash. But Rogers keeps buying stuff over and over; will these media assets pay off? He prefers companies with less debt and more cash flow. The jury is out with BCE about sustaining their dividend (are selling assets to pay down their debt). Quebecor is his top pick in telcos: the only one that's made a good return this year, though Telus is a better long-term pick because of their big cash flow that will let them pull various levers. Don't buy Quebcor or the dividend, but for the growth.

Company is not founder led/owned - no skin in the game with this company. Would not consider investing due to this. Better options in the markets for investors. 

Telus has seen decent momentum in the recent months as the Bank of Canada has begun cutting rates, further helping to support highly-indebted telco names. It has a strong yield of 6.8%, and with bond yields declining, investors will likely seek out high-dividend paying stocks in light of this. We think it can see positive momentum from here, but there may be some chop along the way. 

The utilities sector should also benefit from declining rates, and we think this is an attractive area in the medium to long-term.
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