5 best telecom stocks to buy in 2021

Summary

  • Telecommunication services played an important role in helping people stay connected during the pandemic .
  • Due to this, the telecom sector noted a massive boost in its demand and growth.
  • Some TSX-listed top telecom players pay regular dividends.

Telecommunication services played an important role in helping people stay connected during the pandemic, as strict lockdown measures limited travel. As more users relied on phone and internet connectivity to communicate with their loved ones, work from home, attend school, etc., the telecom sector noted a massive boost in its demand and growth.

On that note, let us explore some of the top Canadian telecom stocks to watch out for in 2021.

  1. BCE Inc (TSX: BCE)

BCE Inc, a dividend-paying Canadian telecom player, saw its stock close at a value of C$ 61.99 on July 23, about one per cent below its 52-week high of C$ 62.7 (July 14, 2021).

It climbed about 12 per cent in the last six months and spiked by nearly 11 per cent over the past year.

The telecom company holds a price-to-earnings (P/E) ratio of 22.8 and a price-to-book (P/B) ratio of 3.1, while its earnings per share (EPS) stands at 2.7, as per TMX.

BCE shareholders were paid a dividend of C$ 0.875 on July 15, 2021. The company pays dividends on a quarterly basis and held a dividend yield of 5.6 per cent.

  1. TELUS Corporation (TSX: T)

TELUS Corporation is ranked among the top Canadian wireless service providers, with close to nine million mobile phone subscribers across the country.

TELUS Corp stocks closed at a price of C$ 27.6 on July 23, with a market cap of C$ 35.3 billion and about 1.2 billion shares outstanding.

At the previous closing price, the telecom stock was trading about two per cent below its 52-week high of C$ 28.3 (July 14, 2021) and about 23 per cent above its 52-week low of C$ 22.5 (November 2, 2020).

Telus share price spiked up by about 21 per cent in the past year and nearly 10 per cent year-to-date (YTD).

The telecom company’s EPS stands at 0.92, while its is P/E is 30.1 and its P/B is 2.58.

Telus shareholders were paid a quarterly dividend of C$ 0.316 apiece on July 2. Its three-year dividend growth rate was 5.6 per cent, as per TMX.

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  1. Rogers Communications Inc (TSX: RCI.B)

Rogers Communications Inc is a leading media and technology company that provide a range of services in Canada. The company is said to have more than 10 million subscribers in the country, which represents about a third of the total market.

Its Toronto Stock Exchange-listed stocks closed at a value of C$ 64.49 on July 23, as against a 52-week high of C$ 67.59, with a market cap of about C$ 25 billion and around 393 million outstanding shares. 

RCI is a dividend-paying stock, set to pay its next quarterly dividend of C$ 0.5 apiece on October 1, 2021. Its presently holds a dividend yield of 3.1 per cent, as per TMX.  

The telecom giant holds an EPS of 3.21, a P/E ratio of 20.1 and a P/B ratio of 3.2. Its also posts a return on Equity (ROE) of 16.48 per cent.

  1. Shaw Communications (TSX: SJR.B)

Shaw Communications is known to provide a range of telecom services, such as internet, television and phone connectivity, in several regions across Canada. Its stock closed at a value of C$ 36.5 on July 22.

The telecom enterprise posted a market cap of about C$ 18 billion and outstanding shares of roughly 476 million.

Shaw Communication’s stock price rocketed by nearly 64 per cent in the last six months. It also spiked by more than 53 per cent in the past year.

The Canadian firm dolls out a monthly dividend of C$ 0.099 apiece, which is set to be paid next on August 8.

Shaw Communication holds an EPS of  1.79, while its P/E ratio is 20.4 and its P/B ratio is about 3.06. It has an ROE of 15.09 per cent.

  1. Quebecor Inc (TSX: QBR.B)

Quebecor Inc offers various telecom-related services, ranging from television distribution, cable connectivity to internet solutions. The company, as on July 23, posted a stock price of C$ 33.32.

Its market cap was around C$ 8.1 billion.

At its previous closing price, Quebecor stock was noting a one-year growth of about 14 per cent. The telecom scrip has expanded by about two per cent this year.

Quebecor posted an ROE of 53.76 per cent, a return on assets (ROA) of 5.9 per cent and an EPS of 2.38.

Shareholders of this telecom company were paid a quarterly dividend of C$ 0.275 apiece on June 22. The dividend records a three-year growth of about 76.05 per cent.

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