The S&P/TSX Capped Communication Services Index was up marginally in mid-afternoon trading on Monday, June 26. This index contains the top telecommunications companies in Canada. Today, I want to zero in on three Canadian telecoms that boast impressive dividend-growth streaks. Stocks that have a long history of dividend growth are historically more dependable for investors who want security. Let’s jump in.
This top telecom stock has a strong history of income growth
BCE (TSX:BCE) is a Montreal-based communications company that provides wireless, wireline, internet, and television (TV) services to residential, business, and wholesale customers in Canada. Shares of this top telecom stock have dropped 4.9% month over month as of mid-afternoon trading on Monday, June 26. The stock is still down 2.3% so far in 2023.
This company released its first-quarter (Q1) fiscal 2023 earnings on May 4. BCE delivered operating revenues of $6.05 billion — up 3.5% compared to the first quarter of fiscal 2022. EBITDA stands for earnings before interest, taxes, depreciation, and amortization. In Q1 2023, BCE posted adjusted EBITDA of $2.53 billion – down 1.8% compared to the previous year.
Shares of this telecom stock currently possess a solid price-to-earnings (P/E) ratio of 20. BCE has delivered 14 consecutive years of dividend growth. This Dividend Aristocrat offers a quarterly distribution of $0.968. That represents a tasty 6.5% yield.
Don’t sleep on this under-the-radar telecom stock with a big dividend-growth streak
Cogeco Communications (TSX:CCA) is a Montreal-based communications corporation that operates in North America. This telecom stock has dipped 1.2% month over month as of late-afternoon trading on June 26. Its shares have plunged 15% in the year-to-date period. Investors who want to see more of its recent performance can play with the interactive price chart below.
In Q2 FY2023, Cogeco Communications posted revenue growth of 1.1% to $736 million. The company’s Canadian operations delivered revenue growth of 1.7% while its American telecom segment saw revenues decline by 5.2%. Meanwhile, adjusted EBITDA increased 0.6% to $351 million. Cogeco also maintained its 2023 financial guidelines.
This telecom stock currently possesses a very favourable P/E ratio of 7.3. Cogeco Communications has delivered 19 straight years of dividend growth. The stock offers a quarterly dividend of $0.776 per share, which represents a solid 4.6% yield.
Why Telus is another stock I’d target for its dividend-growth history
Telus (TSX:T) is a Vancouver-based company that provides a range of telecommunications and information technology products and services in Canada. Shares of this telecom stock have dropped 4.2% over the past month. That has pushed Telus stock into negative territory in the year-to-date period.
Investors got to see Telus’s Q1 fiscal 2023 earnings on May 4. Operating revenues increased 15% year over year to $4.92 billion. Meanwhile, adjusted EBITDA climbed 10% from the Q1 of fiscal 2022 to $1.77 billion.
Shares of this telecom stock currently possess a solid P/E ratio of 24. Telus has achieved 19 consecutive years of dividend growth at the time of this writing. The stock last paid out a quarterly dividend of $0.364 per share, representing a strong 5.7% yield.
