Telecommunications have faced a number of challenges in recent years. Companies are focusing on the rapidly growing wireless divisions. Customers cutting services and an evolving clientele also provide big challenges. Industry giants still offer investors stable income and dividend growth that warrants attention.
Let’s look at three companies that have provided +10 years of dividend growth.
Telus Corporation (TSX:T)(NYSE:TU) stock has increased 5% in 2017 and 3.7% year over year as of close on October 2. Telus reported its second-quarter results on August 11. Consolidated operating revenue climbed 3.9% to $3.3 billion, 85% of which was powered by higher wireless network and wireline data services growth. Telus added 121,000 new wireless television and high-speed internet customers in the second quarter — up 29,000 from Q2 2016.
The company posted a 7.2% decline in net income at $386 million compared to $416 million in the previous year. This was largely due to increases in operating expenses. Telus has posted 13 years (and counting) of dividend growth. The stock currently offers a dividend of $0.49 per share, representing a dividend yield of 4.4%.
Shares of Cogeco Communications Inc. (TSX:CCA) have experienced impressive growth of 39.7% in 2017 and 42.9% year over year. Cogeco reported its third-quarter results on July 13 and has yet to release its fourth quarter as of this writing. The third quarter saw revenues increase 4.5% to $25.6 million and free cash flow climb 19.3% to $109.6 million. Adjusted EBITDA climbed 4.6% to $11.7 million. Profit jumped to $82.1 million, or $1.81 per share, compared to a loss of $381.9 million in the third quarter of 2016.
Cogeco announced a quarterly dividend hike of 15.3% compared to Q3 2016 — climbing to $0.34 per share. The company has declared a dividend for 13 years straight. This represents a dividend yield of 1.86% at offering. Cogeco plans to release its fourth-quarter results on November 3.
Shaw Communications Inc. (TSX:SJR.B)(NYSE:SJR) stock has increased 6.7% in 2017 and 7% year over year. The company released its third-quarter results on June 28. Revenue climbed 2.8% to $1.31 billion compared to Q3 2016. Operating income was down 0.5% to $550 million. Shaw saw strong subscriber growth in cable and internet after launching WideOpen Internet 150 and BlueSky TV. The company posted a net gain of 38,000 revenue-generating units compared to a loss of 47,000 in the third quarter of 2016.
The company performed well in prepaid wireless subscribers, gaining 20,000 RGUs in the quarter and benefiting from the LTE-A network launch. It is now operational in many major Canadian cities. Shaw has delivered dividend growth for 14 years, making it the longest running of any Canadian telecommunications company.
The stock boasts a dividend of $0.10 per share, representing a dividend yield of 4.1%. Its solid growth, impressive dividend-growth streak, and top-notch yield make it an attractive target for income investors.
