Telecom company Shaw Communications Inc (TSX:SJR.B)(NYSE:SJR) is set to release its first-quarter earnings on Jan. 13. It could be a big quarter for the company, which has seen its value drop 14% in the past year while the TSX has risen by 5%.
Shaw has been aggressive in promoting its mobile brand as it looks to grow its sales and wrestle away market share from Rogers and other big telecom providers, which could make Q1 a big quarter for the company. In its most previous earnings report, for the period up until the end of August, Shaw's sales of $1.3 billion were flat from the prior-year period.
However, that was also during a period that was heavily impacted by COVID-19 and where businesses were cutting back on expenditures.
This recent period should be stronger, especially with a boost likely coming from Shaw's mobile division. But even if the company disappoints in Q1, Shaw is still a relatively low-risk investment to hang on to. And with a high dividend that today yields over 5.2%, the stock gives investors plenty of incentive to hang on and wait for the share price to recover from its recent decline.
In 2018 and 2019, the stock generally saw strong support at $24 and so buying it at $23 or less could be a great deal for long-term investors. At a price-to-earnings multiple of 17, you're also not paying much of a premium for one of the top income-producing stocks on the TSX.
A good earnings report could help give it a boost but even if it doesn't, the stock could be a great long-term hold for your portfolio.
