In the dividend or income space, investors have a wide range of companies and securities to consider to obtain yield. Many investors choose fixed income options such as bonds to gain the predictable income they’re looking for, while others choose to buy equities to gain exposure to both income (a company’s dividend) and growth (a company’s stock price). Each option has its distinct advantages and disadvantages.
For those seeking equity exposure, I’ve got one company for you to consider with a very decent dividend yield, stable and reliable fundamentals supporting both the dividend as well as the overall business, and excellent dividend growth potential- the “trifecta” in my books - Rogers Communications Inc. (TSX:RCI.B)(NYSE:RCI).
As mentioned, Rogers is an extremely solid business, with excellent fundamentals and a great competitive position in an oligopoly in Canada’s telecommunications sector.
Perhaps one of the key drivers I like for a company like Rogers is its competitive position for 5G relative to its peers, as this will really be the key competitive sector telcos work to gain market share on, which really starts with major investments today.
Rogers has been investing on a massive scale in 5G, and will continue to do so, to maintain its market lead in Canada among the other two key players: Telus Corporation (TSX:T)(NYSE:T) and BCE Inc. (TSX:BCE)(NYSE:BCE), the parent company of Bell Communications.
For investors looking for a long-term dividend play for the next 10-20 years, a company like Rogers would provide a very nice growing payout over time along with a pathway for top and bottom line growth, and therefore capital appreciation.
Invest wisely, my friends.
