On that note, Rogers Communications Inc. (USA) (NYSE:RCI)’ balance sheet is highly liquid and may well support further expansion measures including the further build out of wireless networks. RCI shares, up 24% over the past year, have near-term appeal. Management showed its belief in Rogers’ prospects recently with a 10% dividend hike, and the shares yield 3.6%.
Finally, TELUS Corporation (USA) (NYSE:TU) is a Vancouver-based telco that is also poised for growth in its Wireless profits this year. Here, too, smartphone subscriptions and related data usage ought to bolster the bottom line.
Moreover, TU’s Wireline earnings could well reverse its profit decline of last year, reflecting a positive trend across the telecom and media industries. Specifically, Internet and data revenue growth trending upward enough to drive a profit gain despite slowly eroding landline customer counts. For TELUS Corporation (USA) (NYSE:TU), this turnaround is also a product of a growing TV subscriber base.
I view TELUS Corporation (USA) (NYSE:TU) as a telecom in a growth phase. The 3.7% yield is another plus, with management recently having upped its payout ratio. Momentum-based investors should take a look.
Summing it Up
A Canadian telecom could provide potential price appreciation, yield and diversification to a portfolio. The sector is in the midst of an upturn, as consumers and businesses increase their use of wireless and Internet services, while the traditional access line deterioration rate has in fact declined. This means there could be further profit upside. Plus, each is investing in television services that have the potential to boost results. In all, the stocks are positioned for near-term price upside and, as telecoms, are relatively safe investments.
The article 3 Canadian Telecom Companies to Know originally appeared on Fool.com and is written by Damon Churchwell.
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