Telus Stock: Another Reason Why This Is a Top 5G Stock

Here’s why long-term investors may want to take a look at Telus (TSX:T)(NYSE:TU) stock as a play on innovation moving forward.

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Dial moving from 4G to 5G

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Telus (TSX:T)(NYSE:TU) is a steady dividend stock providing investors with an impressive growth trajectory in the coming decade. Indeed, many investors are well aware of the benefits the 5G revolution will have for telecom players. In this regard, Telus remains a top choice for many investors right now.

However, some recent amazing news for Telus has shone a bright light once again on Telus stock. Indeed, I view Telus as one of the best 5G plays in the market right now. Let’s dive into what this 5G catalyst is for Telus right now.

5G partnership a big win Telus

Earlier this month, Telus announced a partnership with General Motors to deliver 5G connectivity to this automaker’s vehicles. The organizations say this move will provide faster and highly reliable in-car services. These services include voice-enabled services, music and video downloads, navigation, and mapping. They also said that wireless software updates would become more secure, faster, and more reliable.

The partnership of GM and Telus marks the first time this automaker has selected a Canadian telecom partner. The executive vice president of Telus Business Solutions stated that this partnership lays a foundation for automation capabilities.

For investors in Telus stock, this partnership is a massive deal. This pact could be the gateway for Telus’s entry into additional sectors, and spur more agreements among auto manufacturers, should the GM partnership work out well.

General Motors will introduce a number of new entertainment features and convenience-related features as a result of this 5G deal. In addition, there will be new driver-assistance technologies on the company’s journey to zero congestion and zero crashes.

Telus stock: A step ahead of the pack

This partnership puts Telus way ahead of the pack regarding innovation and getting the world connected to 5G. The fact that this deal was done at a time when Telus and its peers are still rolling out 5G connectivity is equally impressive.

I think Telus stock remains a great long-term pick for so many reasons. This company has proven to be reliable in providing top- and bottom-line growth. Sure, the pandemic provided some difficulties for investors in terms of volatility. However, double-digit year-over-year growth in revenue and EBITDA is impressive. Telus is also a company that has reported nearly a quarter-million new subscribers over the past year as well.

I think this partnership indicates Telus has hit the major leagues in terms of its technological superiority to its telecom peers. Accordingly, Telus stock remains top on my list of Canadian telecom stocks right now.

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 Chris MacDonald has no position in any stocks mentioned. The Motley Fool recommends TELUS CORPORATION.

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