Top Telecom Pick: Should You Choose Telus or BCE?
Successful dividend investing in the stock market is all about making high-quality picks from the right sectors that can distribute payouts comfortably, supported by solid underlying businesses. Looking into stock from the top companies in industries that can align with your passive income goals is a good way to go about this.
The Canadian telecom sector is highly consolidated and well-established, and has a few recession-resistant names that many investors like to own in their portfolios. Most of the top telecom stocks offer shareholders an attractive dividend yield supported by solid fundamentals.
Two Canadian telcos are the top considerations for many investors. Each has its own strategic approach to respond to changing market conditions. Dividend-centric investors should consider these carefully to make a well-informed decision before investing in Canadian telecom stocks.
Today, we'll take a good look at Telus Corp. (TSX:T) and BCE Inc. (TSX:BCE) to help you determine which might be the better pick for your self-directed portfolio.
Telus is one of the Big Three telcos in the country. Boasting a $34.3 billion market cap, it has over 9 million mobile customers across the country, accounting for roughly a third of the market. The company provides internet, TV, and landline services. It has also recently started upgrading from its legacy copper network to fibre optic cables to offer better value for money to customers. Besides this, Telus has several subsidiaries operating across different sectors, including agriculture, healthcare, security, and international business services.
As of this writing, Telus stock trades for $22.65 per share and boasts a 7.4% dividend yield. Despite high-yielding dividends, its payout ratio is in the reliable 60–75% of free cash flow range. The company's diversified revenue streams, increased earnings, and sustainable payout ratio make it an attractive investment to consider.
BCE is another one of the Big Three, boasting a $29.7 billion market capitalization. It offers wireless and internet services, broadband, landline services, and has a considerable media segment that holds digital media, TV, and radio assets. BCE recently announced a 56% dividend cut, effectively slashing the payouts to relieve itself from double-digit yields that we are seeing of late. The dividend cut did not go well with plenty of investors, but it might be a good decision.
Slashing payouts to more sustainable levels means that the company has better financial flexibility to fuel future growth. The more the company can grow, the better returns it can offer to investors in the long run. Being the biggest driving force behind 5G technology in Canada, BCE could benefit from having better financials. As of this writing, it trades for $32.60 per share and boasts a 5.4% dividend yield.
Dividend-focused investors seeking immediate returns might not appreciate the dividend cut announced by BCE. However, those with a long-term investment horizon might appreciate the change because it lets the telco improve its financials over time at the cost of lower dividends for the time being.
Telus offers the promise of growth through dividends that it does not plan to cut. It also has the backing of several diversified revenue streams that might make payouts more sustainable for the company.
Between the two, it is difficult to make the wrong decision for your self-directed portfolio. If you're seeking higher-yielding immediate returns through dividends, Telus wins. If you're willing to invest with plenty of patience for potentially better long-term returns, BCE might be a better pick.
The post Top Telecom Pick: Should You Choose Telus or BCE? appeared first on The Motley Fool Canada.
Before you buy stock in BCE, consider this:
The Motley Fool Stock Advisor Canada analyst team just identified what they believe are the Top Stocks for 2025 and Beyond for investors to buy now… and BCE wasn't one of them. The Top Stocks that made the cut could potentially produce monster returns in the coming years.
Consider MercadoLibre, which we first recommended on January 8, 2014 ... if you invested $1,000 in the 'eBay of Latin America' at the time of our recommendation, you'd have $24,927.94!*
Stock Advisor Canada provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month – one from Canada and one from the U.S. The Stock Advisor Canada service has outperformed the return of S&P/TSX Composite Index by 30 percentage points since 2013*.
See the Top Stocks * Returns as of 6/23/25
More reading
10 Stocks Every Canadian Should Own in 2025 [PREMIUM PICKS]
Market Volatility Toolkit
A Commonsense Cash Back Credit Card We Love
Fool contributor Adam Othman has no position in any of the stocks mentioned. The Motley Fool recommends TELUS. The Motley Fool has a disclosure policy.
2025
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
28 minutes ago
- Yahoo
Why I'm Obsessed With This 6% Monthly Income Producer
Written by Demetris Afxentiou at The Motley Fool Canada Most, if not all, investors look forward to building a well-diversified portfolio. One of the main components of that portfolio is a monthly income producer. Here's a stellar option that isn't just a monthly income producer, but an exceptional choice for long-term investors to consider right now. The traditional way to establish an income stream When it comes to establishing a monthly passive income stream, most investors are immediately drawn to owning a rental property. And there's a good reason for that. Owning a rental property provides a recurring income stream for investors. In the longer term, it also represents equity that can continue to generate income or even be passed on. Unfortunately, that's where the benefits end. In recent years, the price of buying a home has increased significantly. This, in turn, has put pressure on landlords to raise rents to meet the other big change: interest rates. And to top it all off, taxes continue to rise, and prospective landlords still need to find (and keep) paying tenants. Finally, once all those payments are made, any profit from the rental would be minuscule at best, considering the massive upfront downpayment required. In other words, it's a risky venture that's hardly worth its label as a monthly income producer. Here's the monthly income producer your portfolio needs The alternative to owning a rental property is to invest in RioCan Real Estate (TSX: RioCan is one of the largest REITs in Canada. For those unfamiliar with them, REITs are specific types of companies that own and operate income-producing real estate. They often span various types of real estate and offer investors an opportunity to invest in diverse real estate assets. More importantly, they can provide a juicy income stream to investors, which is not unlike a landlord collecting rent. In the case of RioCan, the company boasts a portfolio of commercial retail and mixed-use residential properties. Over the past several years, RioCan has shifted that mix to include more of the latter. The properties are located primarily on transit routes in Canada's major metro markets. Additionally, unlike owning a traditional rental unit property, there is considerably less risk when investing in RioCan. The 6% monthly income producer One of the main reasons why investors flock to REITs like RioCan is for the monthly dividend. As of the time of writing, RioCan offers a juicy 6.5% distribution. This means that investors who can drop $25,000 into the REIT (as part of a larger, well-diversified portfolio) will generate a monthly income of just over $135. Prospective investors should note that this income comes without a mortgage, property tax bill, or property maintenance. The initial outlay in this example of $25,000 is also considerably less than the typical downpayment needed for a single-unit home. Keep in mind that investors who aren't ready to draw on that income yet can choose to reinvest it. This allows any eventual income to continue growing until needed. Furthermore, invest in RioCan as part of your TFSA and that income suddenly becomes tax-free. In other words, RioCan is a 6% monthly income producer that could be a game-changer for any portfolio. Will you consider RioCan? RioCan offers investors an opportunity to invest in a monthly income producer that is both well-diversified and growing. The company is also a lower-risk option when compared with a traditional rental property. In my opinion, investors seeking a monthly income producer should consider adding RioCan to any well-diversified portfolio. Buy it, hold it, and watch your future income grow. The post Why I'm Obsessed With This 6% Monthly Income Producer appeared first on The Motley Fool Canada. Should you invest $1,000 in RioCan right now? Before you buy stock in RioCan, consider this: The Motley Fool Stock Advisor Canada analyst team just identified what they believe are the Top Stocks for 2025 and Beyond for investors to buy now… and RioCan wasn't one of them. The Top Stocks that made the cut could potentially produce monster returns in the coming years. Consider MercadoLibre, which we first recommended on January 8, 2014 ... if you invested $1,000 in the 'eBay of Latin America' at the time of our recommendation, you'd have $24,927.94!* Stock Advisor Canada provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month – one from Canada and one from the U.S. The Stock Advisor Canada service has outperformed the return of S&P/TSX Composite Index by 30 percentage points since 2013*. See the Top Stocks * Returns as of 6/23/25 More reading 10 Stocks Every Canadian Should Own in 2025 3 Canadian Companies Powering the AI Revolution A Commonsense Cash Back Credit Card We Love Fool contributor Demetris Afxentiou has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. 2025 Sign in to access your portfolio


Hamilton Spectator
36 minutes ago
- Hamilton Spectator
Canadian government needs to stand up for lumber workers, says United Steelworkers union
BURNABY, British Columbia, July 28, 2025 (GLOBE NEWSWIRE) — The United Steelworkers union (USW) District 3 and the USW Wood Council are calling on the federal government to take urgent action in response to the latest escalation in the softwood lumber trade dispute. Following the U.S. Department of Commerce's decision to increase anti-dumping duties on Canadian softwood lumber exports to 20.56%, the USW is demanding immediate support for forestry workers and communities across the country. 'This latest increase, along with other threatened tariffs, is yet another blow to workers, communities and the long-term sustainability of our industry,' said Scott Lunny, USW Western Canada Director. 'We represent thousands of loggers and mill workers across British Columbia and Western Canada and our members, and their families, are at risk – governments need to act now.' The combined total of anti-dumping and countervailing duties on Canadian lumber now exceeds 35%. This threat of further tariffs comes after President Donald Trump announced a potential Section 232 'national security' investigation. 'It's a constant attack on our industry and our workforce from the U.S. administration. Our prime minister stood up for the steel sector and says softwood lumber is a priority in trade talks, but what forest workers need now is action, not just words. They need to know Canada has their backs,' said Lunny. In addition to calling for a deal on softwood lumber to be a priority for Canada in trade talks with the U.S., the USW is calling for a comprehensive support package for forest workers, including wage subsidies, loan guarantees for affected businesses and other targeted resources to support provinces, regional and local communities to sustain critical infrastructure and services through this unprecedented uncertainty. The USW warns that the increased tariffs and potential Section 232 tariff implementation, in addition to duties, will cost American consumers and Canadian jobs. 'These duties are unfair and will only drive up housing costs for U.S. consumers, while putting thousands of Canadian jobs at risk,' said Jeff Bromley, USW Wood Council Chair. 'The American market needs Canadian lumber. The U.S. cannot meet its domestic demand, no matter what President Trump says.' The union also pushed back against claims made by the U.S. Softwood Lumber Coalition. 'Canadian producers operate under different conditions. Our harvesting costs are higher, our wages and benefits are better and our lumber is top-quality. This isn't unfair trade. It's a better product from a better system,' said Bromley. USW emphasized that securing a lasting resolution to the softwood lumber dispute must remain a top priority in Canada-U.S. trade negotiations and in the meantime, governments must step in to stabilize the sector. About the United Steelworkers The USW represents 225,000 members in nearly every economic sector across Canada and is the largest private-sector union in North America, with 850,000 members in Canada, the United States and the Caribbean. Each year, thousands of workers choose to join the USW because of the union's strong track record in creating healthier, safer and more respectful workplaces and negotiating better working conditions and fairer compensation – including good wages, benefits and pensions. For more information: Scott Lunny, USW Western Canada Director, slunny@ , 604-329-5308 Jeff Bromley, USW Wood Council Chair, jbromley@ , 250-426-9870 Brett Barden, USW Communications, bbarden@ , 604-445-6956

Yahoo
40 minutes ago
- Yahoo
Biotech stocks dip as Trump administration mulls patent fee overhaul
-- Biotech stocks fell across the board Monday afternoon, with the SPDR S&P Biotech ETF (NYSE:XBI) dropping to a low of 1.1% after reports emerged that the Trump administration is considering a major overhaul of the U.S. patent system. According to The Wall Street Journal, Commerce Department officials are discussing a plan to charge patent holders between 1% and 5% of their overall patent value. This potential change, being considered by Commerce Secretary Howard Lutnick as part of efforts to raise revenue and reduce the government's budget deficit, could generate tens of billions of dollars. The proposed fee structure would represent a fundamental shift in the 235-year-old patent system, which currently requires patent holders to pay relatively modest flat fees totaling up to approximately $10,000 over multiple years. Under the new system, these costs would increase dramatically for many patent holders, functioning essentially as a property tax on intellectual property. This potential change could have significant implications for biotech companies, which rely heavily on patent protection for their drug developments and innovations. The pharmaceutical and biotechnology sectors typically maintain extensive patent portfolios to protect their research investments and ensure market exclusivity for their products. The news particularly affected major players in the biotech space, with companies like Pfizer (NYSE:PFE) trading lower during Monday's session as investors assessed the potential impact of higher patent-related costs on future profitability. Related articles Biotech stocks dip as Trump administration mulls patent fee overhaul Apollo economist warns: AI bubble now bigger than 1990s tech mania If Powell goes, does Fed trust go with him? Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data