The Canadian telecom scene has been quite busy over the past two years. And although it is difficult to say whether the industry-wide sale is still over, I think the recent long-awaited rally in shares of Rogers Communications (TSX: RCI.B) is worth finding out. Indeed, it was an unexpected bump to say the least, but with the new momentum, dividend hunters should again be interested in the eternal underperformer now that he has changed his $ 32 and changes a multi -year lows? As always, time will learn. And although I am not personally inclined to chase Rogers after a lows of more than 45% of 52 weeks, I think the last round of quarterly results was encouraging.
Rogers has a nice dividend and a positive momentum
With shares that start to draw away again, which recently dives 3.5% on Tuesday’s turbulent session, I think value -investors might get another attractive access point in a dividend growth -sensation that shows that the weather will be on the right track. At the time of this letter, shares of RCI.B (the Class-B shares) have a dividend yield of 4%. It is a well -covered payment that is ready for greater growth, but can Rogers continue to skate in the middle of challenges in the industry? Undoubtedly, Rogers’ sport interests can be incredibly resilient, especially because it is the only game in the city for many Canadians to view their favorite Canadian ice hockey team.
Whether you are a diehard Leafs fan, a dedicated fan of Canucks, a believer in the flames, or put on the Oilers who finally organize the cup in 2026 (with Florida Panthers Center Alexander Barkov for the season, perhaps this is the year that the oilers should finally win), the chance to catch that you catch that je je je je je je je!
Indeed, the price increases are really starting to add up, especially the last round, which came into force a few weeks ago. However, the choice is either paying the hefty price tag or not looking at the favorite team, something that can be too difficult for the many hockey fanatics throughout the country. In the beginning I was skeptical about the 12-year-old NHL deal. But now it seems that Rogers can make a lot if fans continue to pay higher prices for their subscriptions.
Solid assets and cash flows, but the challenges of the industry continue to exist
While Rogers deepens his Sportgracht, I see it as a more intriguing telecom than some of his big three rivals. In any case, Wireless must come back on the right track if Rogers’s stock is to stay higher. The growth has been rather slow and with the industrial pressure on prices it can be difficult to continue to grow like in the last quarter. For the time being, the stock looks approximately 17.1 times fairly cheap with price determination (p/e). I am not sure what to make of emerging efforts in satellite connectivity.
Anyway, I am a fan of the multiple, the amount of free cash flow that comes in and the potential for impressive annual dividend growth. Of course, the time will tell what happens to margins when Rogers is forced to lower prices to remain more competitive in a climate that Canadians can see are attracted to cheaper options, even if this does not mean that the best network is received.
So, in short, great assets, but there are question marks when it comes to wireless margins in the long term. Although the dividend is robust and growing, I would much prefer to wait for a withdrawal in the short term (perhaps to the reach of $ 40-42) before I buy shares.
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