Q: So would you rate Telus a buy or hold here? A price point in the mid-20s and a pretty compelling yield seem interesting to me right now. It is a core holding but wondering if the market knows something that is not obvious to me. Thanks .
5i Research Answer:
T is certainly more of an income stock vs. a growth stock, and it pays a good yield of 5.7%. It is expected to see some margin compression over the next year, and margins have been slowly declining over the past several years, which could be one reason for its declining share price. As part of a long-term holding, we would be comfortable with T here given its strong fundamentals, good yield, and solid position in the industry.