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Highlights
- The TSX benchmark index sank by almost 11 per cent this year
- The TSX Capped Communication Services Index was down by over four per cent year-to-date
- BCE noted a net profit surge of 36 per cent to C$ 934 million in Q1 2022
Exploring telecom bluechip stocks like Telus (TSX: T) and BCE (TSX: BCE) could help investors protect their portfolios from the ongoing market fluctuations stemming from inflation and rate hike pressure.
The TSX benchmark index dipped by about eight per cent this year, signalling a weak market environment amid key earnings reports and the latest interest rate decision by the US Fed. On the other hand, the TSX Capped Communication Services Index was down by over four per cent year-to-date (YTD).
Low-risk investors in such volatile situations could seek stability in telecom bluechip stocks. On that note, let us discuss in detail Telus and BCE.
Telus Corporation (TSX:T)
Communication service company Telus have a market capitalization of C$ 39.89 billion. The large-cap company offers diversified technology solutions, including mobile products and fixed products. In addition, the company also serve the healthcare and agriculture industry.
Telus’ net profit grew by 21.4 per cent year-over-year (YoY) to C$ 404 million in Q1 2022, with a 5.8 per cent surge in total telecom subscriber commotions to 17 million during the quarter.
The T stock climbed nearly five per cent in the last one year. According to Refinitiv, Telus stocks recorded a Relative Strength Index (RSI) of 45.65 on July 26. The RSI value ranging from 30 to 70 generally indicates a moderate market condition.
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BCE Inc (TSX:BCE)
On Tuesday, July 26, BCE introduced New Fibe TV, which leverages Google Android TV technology and provides access to over 7,000 apps, on-demand shows, movies, and other features.
BCE noted a net profit surge of 36 per cent to C$ 934 million in Q1 2022. The C$ 57-billion market cap company recorded a dividend yield of almost six per cent, which shows the annual dividend paid as a percentage of its stock price.
The BCE stock swelled by roughly three per cent in 52 weeks and, as per Refinitiv findings, held a moderate RSI value of 44.56 on July 26.
Bottomline
As telecommunication is deemed to be one of the defensive sectors, investors can consider top Canadian telecom players like Telus and BCE for the long term.
Please note, the above content constitutes a very preliminary observation based on the industry, and is of limited scope without any in-depth fundamental valuation or technical analysis. Any interest in stocks or sectors should be thoroughly evaluated taking into consideration the associated risks.
