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Opinions Paul Harris, CFA
Telus CorpT.TOHOLDDec 29, 2017
Stock price when the opinion was issued
As of Jun 12, 2026. Market Open.
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Close in valuations. Owns and likes both, but Telus a little better at these levels, as it has not as much capex ahead plus diversified businesses. BCE has more debt. Looking to increase weight of Telus. Both seem to be bottoming. Regulatory looks tougher going ahead. Be wary of any slowing in immigration, especially with any change in government.
Not the total return stories of the past 5-6 years, but good solid dividend yield. Start picking away at half positions.
Ryan BushellLikes it. They have higher exposure to wireless than wireline, likes their business mix vs. their peers. These dividend stocks saw a boost when interest rates declined last November-December, and the whole group can trend higher if rates keep falling. He sold a lot of dividend stocks in early 2021 and hasn't moved back in.
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Premium contentCanadian dividends
It's no secret that rising interest rates punished dividend stocks in 2023, but the dynamic is already reversing. Telus shares have jumped over 7% since the late-October market bottom though still lost nearly 10% over 2023. That's an accomplishment of sorts, given that its EPS slid 62% in the past year. Still, Telus' retains a safe 6.38% dividend yield and investor sentiment towards the entire sector is now positive. Analysts clock in at 13 buys, two overweights and two holds, with a price target of $27.03, a fair move from its Dec. 29 close of $23.58. Another tailwing is strong immigration flowing into Canada, which means more customers for the telcos. Even if Telus falls short of that projection, investors are collecting a tidy dividend. Another one to consider in this space is BCE.
Has been steady over the years and pays a good dividend, though anything sensitive to interest rates was punished last year. He's owned this in the past and is worth owning now. Pays a steady dividend, better than what bonds and HISA pay. Rates appear to be coming down. Hang on, if you own.
Investors concerned with extra competition in wireless sector. Strong dividend a bright spot for investors. Will continue to own in portfolio. Increasing interest rates also tough on business (falling interest rates will be good). Demand for services not going away, especially with growing population. Scored 8/10 on fundamentals. Estimating ~13% upside.
Brianne GardnerAll Canadian telco stocks have moved in tandem, all facing the same headwinds. Higher interest rates mean less money to reinvest in the business or pay out in dividends. Higher expenses for 5G rollout. Very competitive space. Good for portfolio stability, but don't back the truck up. Yield close to 6.3%.
He recently switched from BCE to Telus, a subtle change. Telus has a bit better growth dynamics with healthcare and TIXT. Finished fibre to the home capex, so free cashflow should increase. Great free cashflow with excellent yield. Oversold. Best in class of all the telcos.
If you had $0 in the market, this would be a good place to start. Interest rates stabilizing will help. Not cheap, but not as expensive as historically. People are travelling, so roaming fees are higher. Immigration is moving West, and Telus tends to be dominant in the West.
Paul Gardner, CFA
Trades a premium to its peers because it has grown faster historically and have been quicker to deliver fibre to homes. But it lacks TV stations and sports teams which Rogers and BCE have. Good profit margins and ROE, but the balance sheet has too much and the PE is 21x PE, much higher than its peers. Pays a 6.5% dividend, but not his first choice.
Has a great yield of 4.3% and trades at about 17X earnings. With Alberta having such difficulty with oil, the stock kind of collapsed. Prior to that it was doing incredibly well. They also had very good growth on their mobile side. They are doing a massive CapX expenditure like BCE in order to do fibre to the home. BCE was doing it in massively dense populations so it wasn't as costly. Telus is working in Alberta, and the costs are for more expensive. Looking at their balance sheet, their CapX is going up substantially, but the free cash flow has fallen a lot. They have to get through this, where the CapX starts to go down again and free cash flow grows. He would stay with this.