AUS
NZ
UK
CA
USA
FRA
GER
ESP
ITA
NLD
PRT
SWE
GRC
IND
POL
BRA
ZAF
RUS
CHN
UAE
Highlights
- Some investors are attracted to telecom stocks because of regular dividend pay outs
- The S&P/TSX Capped Communication Services Index is in the green by over 11 per cent this year
- By comparison, the TSX Composite Index is in the red by one per cent year-to-date
Telecommunications may be considered a basic necessity in the world we live in today. Some investors are attracted to telecom stocks because of regular dividend pay outs.
The S&P/TSX Capped Communication Services Index may be said to have had a decent run so far in 2022 given that it is in the green by over 11 per cent. By comparison, the TSX Composite Index is in the red by one per cent year-to-date.
So, let’s look at five TSX-listed telecom stocks.
Rogers Communications Inc (TSX:RCI.B)
Wireless service provider Rogers has a third of the Canadian market and its stock closed Monday, April 26, at C$73.28.
The stock has risen 20 per cent in the last year and nearly 22 per cent in 2022. It saw its 52-week high of C$80.85 on April 20.
RCI.B has a return on equity of 15.45 per cent. Its dividend yield is about 2.8 per cent.
BCE Inc (TSX:BCE)
BCE also has just under a third of the wireless market and its stock closed Monday at C$71.57.
The stock has risen about 23 per cent in a year and 8.75 per cent year-to-date (YTD). This stock’s one-year high, C$74.09, was also on April 20.
The BCE stock has a price-to-earning ratio of 24.2 and its dividend yield is 5.142 per cent.
Also read: Earth Day 2022: 5 lesser-known Canadian renewable energy stocks to eye
TELUS Corporation (TSX:T)
The third stock on this list is that of TELUS Corporation. It also has just under a third of the wireless market in Canada.
The stock closed Monday at C$33.31 after having increased nearly 12 per cent YTD. Over the past year, it has returned 29 per cent.
The T stock’s one-year high, C$34.65, was on April 11. Its price-to earning ratio stood at 27.3, at the time of writing, and its dividend yield was 3.932 per cent.
Also read: PAT, ABST, OTEX, BB & DSY: 5 Canadian cybersecurity stocks to consider
Shaw Communications Inc (TSX:SJR.B)
The stock of cable company Shaw Communications, which provide TV, internet and landline services, ended at C$38.78 Monday.
The stock is up about 12 per cent over the last year and in the green for 2022 by one per cent. The stock’s C$39.49 52-week high was reached April 8.
The stock’s price-to-earning ratio is 19.5 and dividend yield 3.056 per cent.
Also read: TD, BNS, BMO, CM & NA: 5 TSX bank stocks if large rate hikes worry you
Quebecor Inc (TSX:QBR.B)
Quebecor is Quebec’s leading telecom provider and its stock saw a close of C$32.39 April 25. The stock has spiked 13 per cent year-to-date.
The stock’s return-on-equity is 50.59 per cent and dividend yield is 3.705 per cent. Its three-year dividend growth is 81.14 per cent.
Image source: © 2022 Kalkine Media®
Also read: Can these 5 TSX oil & gas stocks see high returns in May?
Bottom line
Here are some of the biggest telecom companies listed on the TSX, each with billion-dollar market caps. The stocks of four of these companies saw their 52-week highs in April. The stock of the other company, Quebecor, has seen growth this year, a time when stock markets in general have had a bearish run.
All these companies pay dividends that may be seen as passive income, their dividend yields ranging from five to 2.8 per cent. With another interest rate hike likely looming and considering their trajectories so far in 2022, these stocks make for an interesting watch in May.
Also read: How does current inflation compare to 1970s stagflation?
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.
