BCE Inc (TSX:BCE) & TELUS (TSX:T): 2 communication stocks to consider

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BCE Inc (TSX:BCE) & TELUS (TSX:T): 2 communication stocks to consider

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BCE Inc (TSX:BCE) & TELUS: 2 TSX communication stocks to consider
Image source: © 2022 Kalkine Media®

Highlights

  • The S&P/TSX Capped Communication Services Index is up nearly seven per cent year-to-date (YTD)
  • BCE Inc and TELUS Corporation are two of Canada’s biggest wireless service providers and hold about 60 per cent of the market, combined
  • BCE also possesses licenses for channels like HBO, Starz and Showtime

Communication stocks account for 4.85 per cent of the TSX Composite Index. The S&P/TSX Capped Communication Services Index is up nearly seven per cent year-to-date (YTD). BCE Inc and TELUS Corporation are two of its biggest constituents by market capitalization. 

TELUS is one of the biggest Canadian wireless services providers and has captured about 30 per cent of the market. BCE too has about 30 per cent of the wireless market in Canada. BCE also possesses licenses for channels like HBO, Starz and Showtime. 

Let’s take a look at the stocks of these two big communications companies. 

BCE Inc (TSX:BCE)

BCE Inc has a market capitalization of C$62 billion and its stock closed at C$68.17 on Monday, March 29. It is up 18 per cent over the last year and over 3.5 per cent YTD. It had its 52-week high earlier this month on March 7 when it closed at C$71.94. 

The BCE stock’s earnings per share (EPS) is 2.99 and it pays a quarterly dividend of C$0.92. Its dividend yield is nearly 5.4 per cent. 

On February 24, the company said it had acquired television and internet services provider EBOX. 

Also read: Dollarama (DOL) & Metro (MRU): 2 TSX consumer stocks in green YTD

Telus Corporation (TSX:T)

Telus’ market cap was C$44 billion at the time of writing. The T stock closed Monday at C$32.23 having gained almost 28 per cent YTD.  

This year, it is in the green by over eight per cent and interestingly also saw its one-year high of C$33.81 on March 7. 

Holding Telus’ stock includes earning a quarterly dividend of C$0.327 and its EPS is 1.22. It has a dividend yield of over four per cent and a dividend payout is expected April 1. 

Also read: Pembina Pipeline (PPL) & Tourmaline: 2 TSX oil & gas stocks to watch

BCE Inc (TSX:BCE) & TELUS: 2 TSX communication stocks to consider 

Image source: © 2022 Kalkine Media® 

Bottom line

While Telus’ stock has outperformed the sector’s index on a YTD basis, BCE’s stock has fallen short of doing so by almost half. Both the stocks, however, have grown this year and over the past 12 months. They both saw their 52-week highs in March and they both pay dividends.

Also read: POET (PTK) & WeCommerce Holdings (WE): 2 TSXV tech stocks to explore 

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.

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