5G is still one of the most relevant investments today on the Toronto Stock Exchange. Investors should take advantage of the fantastic Canadian 5G stocks available. It looks like the stock market is rebounding, making this the perfect time to add to your retirement portfolio.
Here are three top 5G telecommunications stocks to buy right now.
Rogers Communications: Grew free cash flow
Rogers Communications (TSX:RCI.B)(NYSE:RCI) fell to $46.81 during the March market sell-off from a 52-week high of $67.34. At the time of writing, investors are trading the stock for $60.09 per share. The annual dividend yield is great at 3.31%.
Rogers Communications is one of the biggest players in Canadian telecommunications, television, and sports. The company may be struggling somewhat during the COVID-19 crisis due to reduced revenue from sports advertising. Nevertheless, this is still one of the strongest stocks to buy on the TSX.
Rogers reported third-quarter-of-2020 earnings results on October 22. Despite some setbacks this year, the firm is actually doing quite well for itself and its shareholders. Free cash flow increased by 13% to $868 million versus the same quarter last year.
If you don’t already have Rogers stock in your retirement portfolio, this is definitely one TSX stock that you should buy and hold forever.
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BCE: A top 5G stock to buy
BCE (TSX:BCE)(NYSE:BCE) fell to $46.03 during the March market sell-off from a 52-week high of $65.28. At the time of writing, investors are trading the stock for $56.35 per share. The 5.91% annual dividend yield is the highest among these three top TSX telecom stocks.
Along with Rogers, BCE is one of the largest telecommunications providers in Canada. In addition to wireless cellular service, the company provides internet access, television services, and co-owns a sports team with Rogers.
BCE reported third-quarter 2020 financial results on November 5. The good news is this telecom firm is still adding wireless customers to its sales, signifying growth.
While these telecom stocks may have hit some rough waters this year, BCE is also one of the top TSX stocks to buy and hold forever. If you don’t already own it, now is a good time to jump in while it is still selling for lower than its pre-pandemic 52-week high.
TELUS: Increasing dividends
TELUS (TSX:T)(NYSE:TU) fell to $18.55 during the March market sell-off from a 52-week high of $27.74. At the time of writing, investors are trading the stock for $24.74 per share. The annual dividend yield currently stands at 5%, and the company has announced dividend increases.
TELUS may be one of the smaller telecommunications stocks compared to Rogers and BCE, but it is still a big player in Canada. When Rogers and BCE (especially!) complained about the CRTC decision to reduce wholesale internet rates, TELUS stepped up to expand rural access to broadband internet.
TELUS reported its third-quarter 2020 earnings on November 6. The firm is adding customers to its books while increasing revenue and dividends. Although TELUS might be a smaller player in Canadian telecom, this is still one of the top 5G stocks to buy on the TSX.
Darren Entwistle, CEO of TELUS, commented on the dividend increase in the earnings press release:
“Today, we are announcing the reinstatement of our multi-year dividend growth program, now in its tenth year and targeting annual growth between seven and 10% through 2022. The 7% increase reflects our confidence in the outlook for our business, the sustainability of strong results, as well as our robust free cash flow generation and expected future free cash flow expansion.”
Customer and dividend growth are just two reasons why TELUS is one of the best stocks to own right now. Like BCE and Rogers stock, TELUS should be in every Canadian retirement portfolio.
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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 Debra Ray has no position in any of the stocks mentioned. The Motley Fool recommends ROGERS COMMUNICATIONS INC. CL B NV.