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for a long term hold which would you prefer and why? T, BCE, RCI-B, SJR-B
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Private answer
Hey there. For a long term hold, we actually don't mind any of these companies. They all present unique situations. SJR-B is obviously the underdog in the area, but presents strong growth prospects if it can take market share away from the major three. However, out of the four, the dividend is the riskiest. RCI-B has strong potential to be the first Canadian telecom company to roll out 5G technology, so for growth it looks promising. Again though, we don't really like the dividend, especially considering the company didn't raise the dividend last year. BCE and T are the strongest long term holds in our opinion, and we actually favor Telus. Why? Primarily because the company has the highest expected growth rate out of the big 3 in the sector over the next couple years and in our opinion has the best dividend. It trumps BCE in growth streak at 16 years vs 11, 5 year dividend growth rates at 8.18% vs 5.10% and payout ratio in terms of earnings at 77% vs 94%. It is primarily why we've chosen Telus as our foundational stock in the telecom sector. You can check our foundation stocks out here, or look in the top left of the side menu. With all that said, BCE is still a very strong option, and it's not like your making a mistake by owning them. Marked as spam
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