Q: What's your current view on Telus? The stock hasn't done much and going down. There is likely increased competition from Rogers/Shaw merger. I also hold BCE and wondering if its time to move from Telus to another opportunity.
5i Research Answer:
Investors are likely a bit concerned with the Rogers deal and more competition, but we remain quite comfortable with Telus. We consider it an income stock, and with a gain of 8% YTD and a 5.3% dividend it is doing what is expected. Growth is not expected to be high and will decline a bit this year. But the dividend is secure and has a nice history of growth. We do not think both BCE and T have to be owned, though. If one is seeking growth, NVEI, SHOP, BN, GSY are options, but are of course different in many aspects including dividends, risk and valuation.