MENU

Fool Canada’s first 1,000%+ winner?

Our Chief Investment Advisor, Iain Butler, and a team of The Motley Fool’s most talented investors from across the globe recently embarked on an unprecedented mission:

To identify the 20 Canadian small-cap companies they believe have the best shot at earning investors like you gains of 1,000%+ over the coming years.

For the next few days only, you can get the names and full details on these 20 potential “10-baggers” when you join Iain and his team in a first-of-its-kind project they have dubbed Discovery Canada 2017.

Income Investors: Why Telus Corporation Is a Buy and Hold Forever Stock

Telus Corporation (TSX:T)(NYSE:TU) is a fantastic dividend-growth king that many income investors should feel safe having at the core of their portfolios. The stock has been flat for over two years now, thanks to a slowdown in defensive stocks. We’re entering a period of increasing interest rates, and that’s going to put long-term pressure on the telecoms, but that doesn’t mean you should completely forget about telecom stocks.

I think you should take a contrarian stance and actually pick up shares of a high-quality telecom like Telus so that you can solidify your defensive position to better prepare yourself for a market downturn. It’s not a mystery that we’re in the late stages of an old bull market, but the fear gauge is down, and many investors have been increasingly bullish.

Everyone is greedy right now, and that’s exactly why you should be thinking about buying defensive holdings like telecoms now before everyone breaks into a sudden panic. Nobody knows when the next crash will happen, but when it does happen, it’ll probably already be too late to get a good deal on defensive positions for your portfolio.

Telus took over five years to recover from the crash during the Financial Crisis, how is Telus a way to protect yourself from the next crash?

Sure, the stock of Telus went crumbling, but unlike most other companies, Telus consistently raised its already generous dividend by a huge amount during the crash and the steady rebound which followed.

If you bought shares on the way down, or just held on, you’d profit big time from dividend payments while you patiently waited for the stock to recover. For income investors like retirees, this kind of dividend stability is extremely important.

The company has also been returning a lot of wealth back into the pockets of shareholders, not only through dividend raises but by buying back millions of shares.

Telus is looking to stabilize its dividend even further by focusing on customer retention initiatives. Telus is a leader in customer satisfaction with a top-notch customer service segment, and I believe this is an underrated part of the business that will allow the company to protect its subscriber base from competitors.

Telus currently trades at a 21.3 price-to-earnings, and a 3.3 price-to-book. Both of which are slightly higher than the company’s five-year historical average multiples of 17.4, and 2.8 respectively. While this may seem pricey, I think it’s a fair price to pay considering how aggressive the company has been at returning cash back to shareholders.

Buy the stock now and collect the growing 4.3% dividend yield while you wait for the stock to break out.

Looking for a few great dividend-paying stocks to buy today?

If so, you're in luck! Because we just tapped one of our top analysts -- and experts in this field -- and asked him to put together a special report highlighting three of his favorite dividend-payers to buy right now.

These three "Cash Kings" have an average yield of 4.0%... are poised to profit from three diverse (and highly crucial) sectors of the economy... and look like they have the ability to grow their dividend well into the future.

For a limited time find out how you can get a copy of this brand new special report by clicking here.

Fool contributor Joey Frenette owns shares of Telus Corporation.

NEW! This Stock Could Be Like Buying Amazon In 1997

For only the 5th time in over 14 years, Motley Fool co-founder David Gardner just issued a Buy Recommendation on this recent Canadian IPO.

Stock Advisor Canada’s Chief Investment Adviser, Iain Butler, also recommended this company back in March – and it’s already up a whopping 57%!

Enter your email address below to find out how you can claim your copy of this brand new report, “Breakthrough IPO Receives Rare Endorsement.”

I consent to receiving information from The Motley Fool via email, direct mail, and occasional special offer phone calls. I understand I can unsubscribe from these updates at any time. Please read the Privacy Statement and Terms of Service for more information.