Canadian wireless and telecommunications companies have long benefited from a significant amount of pricing power and protection via sector structure.
Companies like Rogers Communications Inc. (TSX:RCI.B)(NYSE:RCI) have long been viewed as growth plays, as Rogers and its peers have traditionally sported earnings growth rates which have trumped other sectors, with stable customer bases and pricing power which has afforded said companies a moat which is largely unparalleled on the TSX.
That said, investors in Rogers have also noted the benefit of having a relatively attractive dividend yield as yet another reason to own this stock. Currently, Rogers’ dividend yield sits at above 3%, providing an interesting way for investors to potentially play Rogers stock as its price has declined over the past month by more than 10%.
While Rogers remains fairly valued, buying shares of a company such as Rogers on a dip and accepting a nice yield while waiting for a rebound is a strategy which has served long-term investors well in the past.
With earnings growth unlikely to slow down for Rogers and its peers, the presence of the company’s dividend yield is one of the factors many investor will consider as a determining factor of whether or not purchasing this stock makes sense.While I would not necessarily classify Rogers as a pure dividend play, I would invite investors to seriously consider picking up shares on any sort of continued weakness moving forward.
Invest wisely, my friends.