This is the best Canadian telecom stock to buy now

After a peak in 2022, the Canadian telecom stocks hit a rough patch. The big three players in the country – BCE (TSX: BCE), Rogers Communications (TSX: RCI.B), and Telus (TSX: T) – have yielded disappointing returns, which are poorly performing the wider Canadian market. A smaller but increasingly dominant rival, on the other hand, Quebecor (TSX: QBR.B) has been poured ahead.

So, which telecom stock is best to buy now? The answer is becoming increasingly clear.

Large telecom under pressure

In recent years, large Canadian telecoms have been pressed by a combination of stricter government regulations, rising competition from Quebecor, increased interest rates and a saturated market that offers limited growth. As a result, investor sentiment has become sour – and the figures show it.

From 2022 to mid -2024, while the Bank of Canada (BOC) increased policy interest to a punitive 5.0%, the Big Three Telecom delivered an average return of -16.7%. At the same time, Quebecor returned 17.4%and the wider market (as measured by the ISHARES S&P/TSX 60 Index ETF) Returned 12.9%.

Even after the BOC started to lower 2024 in June – it brought up to 2.5% from this month – the Big Three continued to struggle. Their average return since the start of the Rate -Cutting cycle is now an eye -Water -21.9%, where BCE drags the average down after its dividend by more than 50%in May 2025 by more than 50%. Excluding BCE, Rogers and Telus still placed an average return of -14.2%, compared to Quebecor’s incredible 82%and the wider 55%.

Comparing the basic principles

Here is a fast snapshot of the four telecom players based on their debt levels in the second quarter (Q2) 2025 and profit strength:

Despite a higher leverage, Quebecor’s interest rate rate – an important measure for the sustainability of the debt – is the healthiest in the group. This gives it the flexibility to invest in growth and the weather economic decline more effectively.

Quebecor also benefits from smaller and bat. With a backlog of 12 months (TTM) turnover of $ 5.6 billion, it is about a quarter as large as BCE, but since 2021 it has grown by 23% by 23%. For comparison of the turnover of BCE, only 4.1% grew in the same period.

So what stock is the best buy now?

Each of the big three has its appeal. Telus offers a substantial dividend of 7.6%, attractive for income -seeking investors. Rogers acts with a discount of 13% and can represent a turnaround opportunity. BCE is now traded with a 10% discount and yields 5.5%, but the dividend reduction has shaken investor confidence.

However, if you are looking for better growth prospects, Quebecor is probably the best Canadian telecom stock to buy. The outperformance in a challenging environment, solid financial statistics and continuous expansion to the wireless market make it a relatively attractive option.

Although the Big Three can ultimately recover, Quebecor already proves that it can deliver – and investors have taken note.

The only thing that could keep interested investors from Quebecor is that the share is reasonably appreciated today, with little safety margin. Maybe waiting for weakness in a market correction is to be a safer way.