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BCE Inc. (BCE $32.54)
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Rogers Communications Inc. Class B Non-voting Shares (RCI.B $53.88)
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TELUS Corporation (T $18.32)
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Quebecor Inc. Class B Subordinate Voting Shares (QBR.B $52.71)
Q: If--for diversification purposes, not to mention buying into an unloved investment space--which one of the 4 major Canadian telecom companies (BCE, Quebecor, Rogers, Telus)-- would you be most interested in owning long-term, for >10-year hold? Could you rank them from #1 (top choice) thru #4, and provide a rationale for your ranking?
Ted
Ted
5i Research Answer:
While QBR.B is the smallest of the group, it has had the best returns over the past five years, it is trading at a slight premium to peers, and its earnings growth is beginning to accelerate. We would rank them as follows: QBR.B, RCI.B, BCE, T.
We would be most interested in holding QBR.B and RCI.B for a long-term holding, while BCE could be held for its dividend. T has been declining recently and we do not like the negative momentum, BCE has been finding some support, and we think it can eventually do well if management executes here, and RCI.B has shown some signs of reacceleration.