Shaw’s 4% Dividend Is Only 1 Reason Why Investors Should Buy

Investors looking for both yield and growth can look no further: a new Canadian telecommunications company appears ready to kick its growth plans into high gear.

Shaw Communications Inc. (TSX:SJR.B) appears to be giving its larger competitors serious headaches, with its peers Telus Corporation (TSX:T)(NYSE:TU) and Rogers Communications Inc. (TSX:RCI.B)(NYSE:RCI) recently launching significant wireless promotions to counter its newfound rival in Shaw’s Freedom Mobile, a company which appears ready to disrupt a high-priced, slow-moving Canadian telecommunications space.

Innovation and disruption are two things that many Canadian consumers believe are needed to bring some sanity to wireless prices in Canada. Canadians currently pay some of the highest wireless rates in the developed world, partially due to the enforced lack of competition among Canada’s largest carriers.

With the recent rise of smaller independent wireless producers spurring action in the telecommunications space, evidenced by Shaw’s recent acquisition of Freedom Mobile, opportunities for greater competition and therefore lower prices appear to finally be making their way to the end consumer, something which has been welcomed by many.

While Shaw’s Freedom Mobile remains a significant threat to other national providers, the company still has a way to go to be in a position to challenge for top spot among Canadian telecommunications companies.

That said, it appears the company has made some large steps in the right direction, disrupting two of the sleeping giants of the Canadian telecom space. It may be too early to tell, however my money is on Shaw to continue to outperform its peers over the long term, should the company be able to continue to disrupt and innovate faster and better than the others.