This summary was created by AI, based on 3 opinions in the last 12 months.
Cogeco Communications (CCA-T) has received mixed but generally positive reviews from different experts specializing in the telecommunications sector. One expert emphasizes the stock's ability to deliver a total return of around 10% through a combination of yield and modest price gains, despite challenges from price competition and reduced immigration affecting growth. Another analyst noted its strong free cash flow generation, which has allowed for faster dividend increases compared to other telecoms, marking it as a top pick. A third expert points out that despite a recent drop, the stock's stable dividend growth, projected at 10% annually, positions it well in the current market environment as rates are anticipated to decline, which can alleviate the burden of their existing debt. The consensus suggests that while the broader telecommunications sector faces challenges related to high borrowing costs for 5G upgrades, Cogeco's unique positioning allows it to potentially offset these issues and benefit from future profitability amid an oligopoly structure.
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 a 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. Because CCA could hop on the fibre network paid for by others, its stock price has gone up, while the others have gone down.
He bought it for the dividend, which grows 10% annually. All the telcos are down because they've had to borrow to upgrade to 5G, and rates have been high. Especially if rates decline, a lot of their debt will fall in the next 2 years and this oligopoly will enjoy profitablility.
Uncertain future, with RCI.B divesting its stake. Tough times with US broadband. Rogers is now in their backyard and ready to compete. Question marks, reflected in the share price. Won't see big dividend growth. Will investing in wireless give them more earnings? Wait a couple of quarters. Yield is 5.6%.
Pays a 6.3% dividend that's growing 10% annually vs. other telcos at 5%. CCA generates better cash flow. The knock is that CCA deals a lot in the US where consumers hop from one carrier to another in search of cheaper phone deals. They're gaining some market share in the US to compete with AT&T and Verizon.
(Analysts’ price target is $71.30)The US was a growth driver for them, but are facing more competition there. US telcos are falling as a whole. Also, in Canada there could be the launch of a wireless service without launching a network. And Rogers owns a big stake in CCA, so will Rogers delever following the Shaw deal? These are three overhands that have pressured shares. He prefers CCA's larger peers. Also, telecoms remain weakness.
Prefers Quebecor. They rejected an approach from shareholder Rogers, so it's unclear what Cogeco's long-term future. Is overlooked by Bay Street. Has lagged the TSX the past decade. Pays a decent 4% yield. But they lack wireless and entertainment unlike its peers. And they're not in the major Canadian markets.
Cogeco Communications is a Canadian stock, trading under the symbol CCA-T on the Toronto Stock Exchange (CCA-CT). It is usually referred to as TSX:CCA or CCA-T
In the last year, 6 stock analysts published opinions about CCA-T. 3 analysts recommended to BUY the stock. 0 analysts recommended to SELL the stock. The latest stock analyst recommendation is . Read the latest stock experts' ratings for Cogeco Communications.
Cogeco Communications was recommended as a Top Pick by on . Read the latest stock experts ratings for Cogeco Communications.
Earnings reports or recent company news can cause the stock price to drop. Read stock experts’ recommendations for help on deciding if you should buy, sell or hold the stock.
6 stock analysts on Stockchase covered Cogeco Communications In the last year. It is a trending stock that is worth watching.
On 2025-04-01, Cogeco Communications (CCA-T) stock closed at a price of $69.5.
Well, Cogeco has. It boasts an earnings yield of 30.6%, which places it in the top 10% among global peers, while its book value yield of 146.1% put it in the top 20%. True, its 5.91% dividend yield is smaller than its Canadian competitors, but is safe at a 42.5% payout ratio and growing 10% annually--twice as fast as the others--thanks to strong cash flow. Further, CCA trades at a 6.67x PE, compared to Telus' 30.2x, Rogers' 12.4x and BCE's 179x. Cash flow is one reason why CCA has outpaced its peers in the past year, with shares up nearly 15%, while the Big Three have lost ground, with Rogers and BCE both sinking 30%.