-
BCE Inc. (BCE)
-
Rogers Communications Inc. Class B Non-voting Shares (RCI.B)
-
TELUS Corporation (T)
-
BMO Canadian Dividend ETF (ZDV)
Q: Dear 5i team.
Does it make sense to just buy equal amounts of the big three in Canada, or is there an ETF that provides good exposure to these, along with other adjacent companies?Thanks for your help.
Does it make sense to just buy equal amounts of the big three in Canada, or is there an ETF that provides good exposure to these, along with other adjacent companies?Thanks for your help.
5i Research Answer:
We prefer an individual name approach, as we don’t think not every telecom is worth holding for the long term. Certainly owning three helps diversification, but not as much as one might think as the sector tends to move together anyway.
We like BCE, we think BCE is currently the most attractive name within the Canadian telecom sector, as the largest scale player in an industry that is capital intensive, and it has a more conservative balance sheet compared to peers, and strong operating metrics such as ROEs, and EBIT margin.
Alternatively, investors can also consider ZDV to get exposure to Canadian high-dividend paying names across several sectors and industries.