Investing for retirement involves a total different approach than focusing on the daily market gyrations. In this strategy, you begin to plan early with an investment horizon, spanning over the next 10, 20, or 30 years.
Once the time is on your side, the next challenge is to pick the right kind of stocks that grow your savings gradually. By the time you’re ready to retire, you’ll have a portfolio big enough to support your daily needs.
Here is a top dividend stock that offers a great potential to multiply your wealth if you plan to invest in it for the long-term.
Rogers Communications Inc.
Rogers Communications Inc. (TSX:RCI.B)(NYSE:RCI) is an attractive dividend stock to hold in your retirement portfolio. Rogers is Canada’s second-largest telecom company, but it has the largest market share of the country’s growing wireless segment, dominating about a third of the market’s revenue and subscribers.
Rogers drives about 60% of its revenue from the wireless segment, 26% from its cable division, which includes high-speed internet, information technology, and telephony services to consumers and businesses, and the rest from its vast media assets.
If you’re not familiar with the Canadian telecom market, then you should note that it’s very different from what we have south of the border. Here, the market is mainly controlled by three top players who serve a growing population with strong demand for wireless services.
Roger’s growth in earnings shows that the company is well on track to take advantage of these positive dynamics. In the latest quarterly report, Rogers beat analysts’ estimates for quarterly profit on the strength of its wireless business.
Another thing that makes Rogers a top buy for retirees is that the company has been spending heavily on customer service and wireless networks. In the fourth quarter, the company added 112,000 net postpaid subscribers, up from 72,000 new customers a year earlier.
According to a recent report in the Globe and Mail, Rogers is also getting ready to deploy the fifth-generation, or 5G, technology with various acquisitions across the country. It has partnered with mobile telecom equipment maker Ericsson for 5G trials in Toronto and Ottawa among other cities, the report says.
Rogers’s stock currently offers an annual dividend yield of 2.8% with the quarterly dividend payout of $0.5 a share. Its yield is the lowest among the three top telecom operators, but that doesn’t tell the complete story. On a total returns basis, Rogers produced 60% returns during the past five years — beating both its peers and the benchmark index.
Rogers Communications is a top dividend stock that could provide stable income and growth to your retirement portfolio. The company has growth momentum and a development plan to roll out new technologies. This strategy will continue to help generate strong income for long-term investors.
This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.
Fool contributor Haris Anwar has no position in the stocks mentioned in this article. Rogers Communications is a recommendation of Stock Advisor Canada.