Could you give me a short commentary on both and which would you prefer for total return over the next couple of years. I already own Telus and wonder if there would be too much overlap to own both.
Thank You,
Barry
CCA is quite small at $2.9B, with a 5.38% yield. It is cheap at 8X earnings. Focusing more on internet and cable, there would we think be quite a lot of overlap with T, though they do serve different geographies. The stock is up 28% in a year, and about 2% YTD. Growth has not been stellar, and EPS this year is expected to be below the levels of five or six years ago. The dividend does have a decent track record of growth (last increase in November). T is $33B, much more expensive at 20X earnings, with a 7.60% yield. The dividend was increased last week and also in November. T stock is up 12% this year and 5% over 52 weeks. It too is showing lower earnings than in 2019. It does have significant network upgrade expenses, but it is also more diversified and has made many acquisitions in healthcare and other sectors. We would consider both stocks OK but not overly exciting. Despite its higher valuation, we would prefer T.