- Canadians willing to invest their money for five years or more can explore telecom stocks like Rogers Communications, Telus, and BCE.
- A telecom stock mentioned below spiked by over 17 per cent in six months.
- A company listed below was recognized as the ‘Most Trusted Telecom’ brand of Canada.
Stock markets have been volatile in 2022, but it doesn’t not seem to have kept away new investors from unlocking long-term gains. Long-term compounding often help investors weather short-term swings and build wealth in the future.
Canadians willing to invest their money for the next five years or more can explore quality telecom stocks like Rogers Communications (TSX: RCI.B), Telus Corporation (TSX: T), and BCE Inc (TSX: BCE) etc. These TSX stocks have been paying regular dividends to their stockholders for more than 10 years.
So, let us explore the following TSX telecom stocks.
1. Rogers Communications Inc (TSX: RCI.B)
Rogers Communications launched Ignite Internet on April 21, which features 2.5 gigabits per second (Gbps) of download and upload speed. The telecom giant currently holds a return on equity (ROE) of 15.45 per cent. The large-cap company is also supposed to dole out a quarterly dividend of C$ 0.50per share on July 4.
According to data collected from Refinitiv, Rogers’ stock gained momentum, with its Relative Strength Index (RSI) value hovering about 70 in the first half of April. It achieved a 52-week high of C$ 80.85 on April 20. However, the telecom scrip then slipped, and at present, its RSI value stands at 36.15. RCI.B spiked by over 17 per cent in six months.
2. TELUS Corporation (TSX: T)
TELUS Corporation was recognized as the ‘Most Trusted Telecom’ brand of Canada based on the Gustavson Brand Trust Index (GBTI) on May 2 for the fourth year in a row. The C$ 44-billion market cap company held a price-to-earnings (P/E) ratio of 26.10 at the time of writing this.
T scrip zoomed by over 26 per cent in a year. As per Refinitiv data, its RSI value was 36.03 on May 3.
3. BCE Inc (TSX: BCE)
BCE, along with Amazon Web Services (AWS), launched multi-edge compute (MEC) with AWS Wavelength across the nation. This multi-edge compute features AWS compute and storage services and enables users to experience its 5G network. The internet infrastructure provider saw its net profit swell to C$ 934 million in Q1 FY2022, up from that of C$ 687 million in the first quarter a year ago.
Stocks of BCE Inc soared by almost 18 per cent in 52 weeks. BCE stock broke its resistance level multiple times and recorded a 52-week high of C$ 74.09 on April 20. However, since then, it has plunged to C$ 68.60 as of May 3.
4. Cogeco Communications Inc (TSX: CCA)
Cogeco Communications, a mid-cap company providing internet and other telecom services to the residential and business sector, reported a year-over-year (YoY) spike of 8.5 per cent in its profit of C$ 119.91 million in Q2 FY2022.
Cogeco sank by approximately 15 per cent in 52 weeks and held an RSI value of 30.81 as per Refinitiv.
5. Shaw Communications Inc (TSX: SJR.B)
Shaw Communications’ revenue declined by two per cent YoY to C$ 1.35 billion in Q2 FY2022. The telecom company also saw its bottomline diminish by 9.7 per cent YoY to C$ 196 million in Q2 FY2022.
Stocks of Shaw Communications were up by almost five per cent YoY. Based on Refinitiv findings, SJR.B stock has been trending downwards with an RSI value of 26.55 on May 3.
These are some of the major telecom players in Canada, with a dividend yield of nearly three per cent or more. With rising inflation and borrowing rates, these stocks could provide stable passive income to investors. Also, stock prices of such companies could significantly grow in the future as telecommunication and network infrastructure is essential for disruptive technologies like a metaverse.
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.