Investment Q&A

Q: Hi Peter,

I wanted to get your thoughts on Telus. What do you think about the threat of opening up the competition in this area. How would you look at this risk and what % probability do you think it happens? Is Telus a buy at this level? Is the sector a buy or are risks to big to ignore.

Q: Hi Folks,
I am looking at selling ISRG (-7%) or TELUS (-23.50%) and CNQ (-22%) from my Non Registered account and use the money to fund next years TFSA contributions. I would like your opinion as to what order you would sell and whether these are re-buyable in January.
Thanks

Q: In a recent G&M article, Bell and Rogers could soon have competition for direct-to-cell customers from Starlink.

What future impact, if any, would this potentially have on Telus? This will be my only remaining Telecom stock, which pays me a fairly significant amount of my dividends. Do we know if there is a huge risk of future disruption for Telus?

Q: Hi 5i,
I've been thinking about adding Telus to my RRIF for its dividend of over 7% and slow but hopefully steady growth over time. However, a service I subscribe to puts its Earnings Payout Ratio at 251% and its FCF Payout Ratio at 116%. And also says its debt-to-equity ratio is not healthy. Are these numbers accurate, and could I have your thoughts on buying T at today's price and holding 5 years? And could you also compare it to POW for the same 5 year hold.
Thanks 5I,
Peter

Q: Hello Team,

I'm about 5-6 years away from retirement and have starting to move some of my growth portfolio into dividend paying stocks. Currently I have 25 different holdings in my account (mostly your growth portfolio mixed with a few of your favourite US names). I have 11% of my portfolio in 3 dividend stocks, T, CJ and BEP.un. Would you be okay holding these 3 or do you suggest having more (or less) individual stock holdings for dividends. My goal is to average at least 6% yield. Thoughts?

Q: Which ones (if any) would you buy and hold and forget for 10 years?

Q: I've held these for several years, except for BEP.UN which is little over a year, I've accumulated dividends in LRSP, RRSP and TFSA, and want to add to these and keep over long term, wondering if you would be comfortable doing so generally speaking.

Q: BUY. or. HOLD. or SELL for a 3 to 5 year period?

Q: Good morning,
I was looking to buy some of a Canadian telecom stock and was wondering if you had any preference between Rogers, Telus, and Bell?
Thanks

Good morning,

Follow up to my previous question. Which company do you think would perform best in a higher inflation environment? Also do you think the the Telecom sector could perform well in an inflationary environment and what other sectors besides hard assets would perform well.
Thank you very much.

Q: At this point, after the good advance in the last few month, do you see advantageous to switch from Rogers to Telus which has been lagging so far. this is in a RIF account.

Q: I hold these 3 stocks for income and have seen capital erosion in recent years with weakness in the telecom sector. In terms of industry concentration, how much overlap is there between the three (Telus has held up best), would you recommend letting one or two of them go, which one(s), and what would you recommend in the general sector as a replacement (US or Cdn)?

In particular, I am curious about BCE's prospects following the US acquisition after selling MLSE stake, dividend cut, debt, and scaling back of capex.

Q: The current dividend yield on Telus is close to 7.75% at the market close Aug 1. High dividend yield is a red flag. Is this dividend sustainable? Is it a red flag and if so why?
Is it following a similar path as BCE?

Q: Hello Peter & Team

Have held T since Nov 2022. I am in the red 25%. Appreciate the dividend, but do not enjoy the capital loss. Read lots of comments in 5i answered questions and the overall sentiment appears to be positive. Do I keep holding this issue? Or sell and move on. And if I am advised to move on, what alternative would you recommend with a similar dividend?

Thanks for all you do

gm

Q: Please rank according to current buy rating. All of these equities are dividend aristocrats with current dividend/distribution higher than 4.5%. Thanks

Q: I have held BCE for about 3 years now. Cost of $20K and it's worth $13.5K now. Down $6,500... 34%. Wondering if it makes sense to sell half of my BCE (about $7K) and buy $7K worth of Telus to try and leverage any potential gains across both rather than just one. I guess, wondering if splitting my investment across two of these telco's makes sense ... and a brief reason as to why (or why not) I should do it.

Q: Hello,
What do you think of switching Telus to ZWU.
Telus is in my TFSA account and i am currently down 10%.Also, what is the risk of ZWU ?
Thanks!

Q: Hi, can you rank these stocks for best to worst expected total return over the next 3 years in a non-registered account. Also, rank them for the lowest to highest risk.

Thanks for the great service!

Q: Hi Peter and 5i Team,

What do you make of this from the Globe & Mail for Friday, June 20? “CRTC upholds decision allowing large telecoms to resell internet services on each other’s networks”

This decision looks like it will benefit Telus. I recently sold BCE at a loss because I had lost all confidence in their ability to turn things around, especially by keeping their current CEO. However, we still hold Telus and a small amount of Quebecor. Do you think that the CRTC decision could negatively impact QBR.B?

If so, I’m considering selling it and deploying the proceeds to T, to stay in the same sector. QBR.B has given us a nice return in the short time we’ve owned it. Your thoughts?

You recently answered my question about Ts plans to improve infrastructure by spending 70 billion dollars over the next five years. Is it possible that the CRTC decision could mitigate some or all of the risk caused by this planned expenditure?

Thanks as always for your insight.

Q: I have held Telus for 10+ years and have been fine with the results but for the last year or so I have been wondering if they could be in risk of someone providing a product to compete with them for cell and internet coverage over satellite. I am aware of a few products for internet over satellite now. I read an article about perhaps Apple of going this route for their cell phones. With the recent announcement of the increased spend for Telus how likely do you see them in the position of shrinking revenue and earnings. Has the risk of the company increased.

Q: Hi Peter and 5i Team,

An article in the Globe & Mail (May 27) was titled:

“Telus to invest more than $70-billion in Canada over next five years to expand infrastructure”

Given that its payout ratio is now approximately 100%, and if interest rates should rise while there’s a slowdown in the economy, is this a prudent decision for Telus to take? Having recently sold BCE at a loss, and still owning T, are my concerns justified?

In the Communications Services Sector, we also have a small position in QBR.B, which is doing reasonably well so far. Its debt leverage is the lowest among its peers, which I believe to be an important metric at this time.

Thanks in advance for your insight.