AUS
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CA
USA
IND
Highlights
- The TSX communication services index slipped by about two per cent year-to-date
- Telus announced an agreement in mid-June to acquire LifeWorks
- BCE posted a dividend yield of almost six per cent
Low-risk investors could look for safe equities like TSX telecom stocks Telus (TSX: T) and BCE (TSX: BCE) that could provide long-term value by offering stable returns and regular dividend income.
The Canadian telecom sector has been making headlines for a while now as Rogers (TSX: RCI.B) and Shaw (TSX: SJR.B) struggle to resolve objections posed by the Competition Bureau to complete their proposed deal. The TSX communication services index also slipped by nearly two per cent year-to-date (YTD).
However, Canadians with low-risk tolerance can look at T and BCE stocks, as they are among the top telecom service companies in the country.
Telus Corporation (TSX:T)
Telus announced an agreement in mid-June to acquire LifeWorks (TSX:LWRK). This move is aimed to expand and improve its Telus Health business. PCMag, a New York-based magazine, also recognized Telus as the fastest internet service provider (ISP) in Canada on June 30 for the third year in a row.
Stocks of Telus climbed nearly five per cent in the period of past nine months. As per EODHD/Others, Telus breached its support level in June and held a Relative Strength Index (RSI) of 41.88 on July 6, with trading volume in the green.
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BCE Inc (TSX:BCE)
BCE is among Canada's top dividend-paying bluechip companies, with a dividend yield of almost six per cent (annual dividend paid expressed as a percentage of the company's stock price).
BCE reported a net profit rise of 36 per cent year-over-year (YoY) to C$ 934 million in the latest quarter. BCE stock swelled by almost four per cent in 12 months. As per EODHD/Others, BCE also broke it support levels in June and had an RSI value of 43.25 on July 6.
Bottomline
Telus and BCE are among the top Canadian telecom operators working on improving their network spectrum and infrastructure. Hence, investors could consider these TSX stocks for stable returns in future.
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.
