With higher mortgage payments and tighter household budgets, Canadians are looking for ways to make their money stretch a little further. A recent TD Bank survey found that 73% of mortgage renewers plan to cut spending to keep up with payments, and 31% are even pulling money from investments. While this economic pressure can feel discouraging, it also shines a spotlight on investments that offer steady income and long-term potential. Rogers Communications (TSX:RCI.B) is one of those rare dividend stocks that looks especially attractive right now, down 33% and ready for patient investors.
About Rogers
Rogers is one of Canada’s largest telecom companies, offering wireless, cable, and internet services across the country. It’s a household name, whether you’re watching Blue Jays games on Sportsnet or streaming on your Rogers-powered Wi-Fi. And while it faced its fair share of challenges recently, the business fundamentals remain strong.
As of writing, shares of Rogers trade around $36.67, down about 33% from highs reached before the pandemic and the lengthy process of acquiring Shaw Communications. That merger is now complete, and Rogers emerged with a bigger customer base, more infrastructure, and a firmer grip on the Western Canadian market. It’s also now the largest wireless company in the country.
Into earnings
In its most recent earnings report for the first quarter of 2025, Rogers reported service revenue growth of 2% and adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) growth of 2%, with wireless EBITDA margins hitting 65%, a figure that leads the Canadian industry. Despite rising costs and a softer consumer spending environment, the business continues to generate healthy cash flow and operate efficiently. Its overall EBITDA margin hit 45%, showing that Rogers squeezes out solid performance even under pressure.
And it’s not just the operational performance that’s worth noting. Rogers made progress on its balance sheet, reducing its net debt leverage ratio to 3.6 times, down from 4.5 times at the time of the Shaw merger. A $7 billion equity investment from Blackstone also helped stabilize its financial footing, providing flexibility and confidence moving forward.
Delectable dividends
Dividends are a major part of why investors buy into Rogers. The dividend stock currently pays an annual dividend of $2 per share, which gives the stock a yield of about 5.5% at today’s price. That’s well above the TSX average and especially attractive in this kind of environment, where fixed-income returns are still catching up. Rogers hasn’t cut its dividend through the pandemic or the merger process, making it a reliable choice for income-seeking investors. In fact, $20,000 could earn you around $1,088 at writing in annual dividend income!
| COMPANY | RECENT PRICE | NUMBER OF SHARES | DIVIDEND | TOTAL PAYOUT | FREQUENCY | INVESTMENT TOTAL |
|---|---|---|---|---|---|---|
| RCI.B | $36.73 | 544 | $2.00 | $1,088.00 | Quarterly | $19,991.12 |
Another reason Rogers deserves a closer look is its undervaluation. Analysts covering the stock have a 12-month average price target of $49.74. That suggests more than 35% upside from where the stock trades today. The stock’s low price-to-earnings multiple makes it a potential bargain, especially for investors who believe the telecom sector will recover as consumer spending improves and cost synergies from the Shaw merger kick in.
Bottom line
In a market full of noise and uncertainty, it’s nice to come across a dividend stock with a clear path to stability and income. Rogers may not be the flashiest name on the TSX, but that’s kind of the point. It provides an essential service, collects recurring revenue, and pays a generous dividend while trading at a discount.
So, if you’re one of the many Canadians feeling the pinch right now, consider this: a $20,000 investment in Rogers stock today could earn you about $1,088 a year in dividends without touching your principal. Reinvest that income, hold on through the recovery, and you could see meaningful growth on top of that income.
