3 Canadian telecom stocks to buy in Q4 2021

Highlights

• The S&P/TSX Capped Communication Services Index rose by 1.071 per cent on Wednesday, October 27.
• A cable operator mentioned below posted a return on equity (ROE) of 17.45 per cent.
• A telecom firm listed here held a dividend yield of 5.553 per cent.

The Canadian telecommunication sector comprises influential players like TELUS Corporation, BCE Inc and Cogeco Communications Inc that are focused on expanding their network infrastructure to enhance accessibility.

Telecom companies can also help investors diversify their portfolio as these are often considered to be highly defensive and provide regular dividend income as an added advantage.

The S&P/TSX Capped Communication Services Index rose by 1.071 per cent and marked a year-to-date (YTD) gain of 14.64 per cent on Wednesday, October 27. 

Also read: Algonquin & 2 other TSX clean energy stocks to buy before November

On that note, let us discuss some TSX-listed telecom companies that are expected to do well in the future.

 Image source:© 2021 Kalkine Media Inc

1.    TELUS Corporation (TSX: T)

The stock of TELUS Corporation, a Canadian communication tech giant, surged by 0.356 per cent to C$ 28.18 apiece at market close on October 27. At this level, it had dropped by about six per cent from a one-year high of C$ 29.99 achieved on September 8, 2021.

Canadian telecom stocks to buy in Q4 2021

During this session, T stock hit a day high of C$ 28.35. This rise came after the company announced its partnership with Genetec, a Montreal-based tech firm.

The deal is meant to integrate TELUS security cameras with Genetec’s Stratocast, a cloud-subscription powered video monitor, to simplify video surveillance for businesses across Canada.

Image source:© 2021 Kalkine Media Inc

TELUS stock grew by more than 20 per cent year-over-year (YoY) and scaled up by almost 12 per cent year-to-date (YTD). Its nine-month return was up by nearly six per cent, while in the previous six months, it has gained by more than 10 per cent.

From the valuation front, the wireless service operator held a return on equity (ROE) of 9.35 per cent.

2.    BCE Inc (TSX: BCE)

A wireless and internet service provider, BCE Inc has been one of the most actively traded TSX-listed companies on the TMX site, holding a 10-day average trading volume of 1.7 million.

BCE stock moved down by 0.364 per cent and closed the session at C$ 63.03 on October 27. It marked a decline of about six per cent from the 52-week high of C$ 67.08 hit on September 13, 2021.

However, the telecom stock has soared by approximately 14 per cent in the past month. It also grew by over nine per cent in the last six months.

On a YTD basis, it has jumped up by almost 16 per cent.

As of October 28, its ROE stood at 16.81 per cent, while its dividend yield was 5.553 per cent.

3.    Cogeco Communications Inc (TSX: CCA)

On October 27, the stock price of Canadian telecom firm Cogeco Communications Inc dropped by 0.541 per cent to C$ 106.70 apiece at market close. Here, it had dipped by more than 13 per cent from its one-year high of C$ 123.07 reached on July 13, 2021.

The cable operator saw its scrip slip down by nearly six per cent in the past month. It has also plummeted by almost eight per cent in the last six months.

However, the telecom stock has gained almost 12 per cent on a YoY basis and mounted up by about nine per cent YTD.

Cogeco held an ROE of 17.45 per cent and a dividend yield of 2.399 per cent.

Also read: 3 Canadian growth stocks to buy in November

Bottom line

The above-mentioned communication companies are likely to tackle the economic shocks and overcome the market setbacks, considering their present position in the sector.

However, investors should closely watch a company’s business expansion programs, operations and fundamentals to ensure quality investment decisions to upkeep their financial health.