Ask any Canadian consumer about their wireless bill, and a heated discussion is likely to ensue. With Canadians paying more for their cellphone and data usage than in most other developed nation, looking at investing in the broader telecom industry as a way of capitalizing on the oligopoly which defines Canadian telecom is a proven long-term investing strategy.
Looking at the highest-yielding Canadian telecom option available today, BCE Inc. (TSX:BCE), the parent company of Bell Media, currently offers investors a 4.7% yield in addition to one of the best growth profiles among its peers.
This past quarter, BCE beat analyst expectations, adding on more than 117,000 postpaid wireless subscribers, also adding internet customers and TV subscribers at levels which many analysts did not expect, resulting in a near-term bump in BCE’s share price to a year-to-date gain of more than 6% as of the time of writing.
The ability of BCE to continue to grow its dividend at approximately 5% per year as it has done for the past five years has resulted in positive sentiment among analysts who believe the company will be able to continue its trend of dividend growth moving forward given the company’s strong free cash flow growth profile.
When considering Canadian telecom options, BCE stands out among the pack as a top choice for income focused investors looking for a solid combination of income and growth in the medium to long-term.
Invest Wisely, my friends.
