When it comes to Canadian telecom stocks, BCE (TSX:BCE) and Telus (TSX:T) are two of the biggest names around. Both offer stability, dividends, and exposure to services Canadians use every day. But if you’re wondering which one is the better buy right now, it really depends on what kind of investor you are. One offers more income today. The other promises more growth tomorrow.
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Recent performance
Let’s start with BCE. It’s Canada’s largest telecom provider, offering everything from internet and phone to TV and media content. As of writing, BCE trades around $30 per share and offers a hefty dividend yield of 5.9%. That makes it one of the highest-yielding blue-chip stocks on the TSX. In the first quarter of 2025, BCE reported revenue of $5.9 billion, down slightly from $6 billion last year. But earnings were much stronger. Net income rose to $683 million, a jump of nearly 50% from the same period in 2024. Earnings per share (EPS) increased to $0.75, while free cash flow rose 41% to $978 million. BCE has cut costs and focused on driving efficiency across its operations, which helped support its dividend and reduce debt.
On the other hand, Telus brings a different mix. It’s also a telecom giant but has been expanding its reach into digital health and agriculture technology. Telus trades around $22 per share, offering a lower yield of 7.6%. In its most recent quarter, Telus reported net income of $321 million, a huge increase of 153% year over year. Revenue came in at $4.9 billion, while free cash flow more than doubled to $468 million. The Canadian stock is also investing heavily in network expansion, including fibre internet and 5G infrastructure. To support this, it raised $800 million in a recent bond offering, showing it’s not afraid to take on debt for long-term growth.
Comparing the two
So, what’s the better bet? BCE’s big advantage is its yield. At nearly 6%, investors are paid handsomely to wait. Its long track record of dividend payments and cost controls makes it appealing for conservative investors looking for reliable income. Even after recent layoffs and restructuring, it’s still focused on generating strong cash flow to keep that dividend going.
Telus, meanwhile, is playing the long game. It has a high yield, but more exposure to growing sectors like digital health. That could offer more upside over time, especially if its new ventures start to pay off. It has also been consistent about raising its dividend over the years, which gives investors a bit of both worlds, some income now and more later. Here’s what $5,000 could get investors as of writing from each stock in terms of dividends alone.
| COMPANY | RECENT PRICE | SHARES | DIVIDEND | TOTAL PAYOUT | FREQUENCY | INVESTMENT TOTAL |
|---|---|---|---|---|---|---|
| BCE | $30.16 | 165 | $1.75 | $288.75 | Quarterly | $4,976.40 |
| T | $21.93 | 228 | $1.66 | $378.48 | Quarterly | $4,998.04 |
In terms of risks, BCE is dealing with challenges in its media division. Traditional TV and radio are losing ground to streaming, which is pressuring ad revenues. Telus doesn’t have that exposure, but its move into new industries comes with execution risk. Integrating acquisitions and building out infrastructure are costly and take time.
From a valuation standpoint, both Canadian stocks are reasonably priced given their earnings and cash flow. BCE has the edge on current income, while Telus might appeal more to those looking for long-term growth with a tech twist. Both have strong balance sheets, steady cash flow, and government-regulated businesses that offer protection during downturns.
Bottom line
So, who wins? If you’re building a portfolio for income and want to maximize yield today, BCE is the better pick. It’s reliable, stable, and pays generously. But if you’re looking to blend income with growth and are willing to be patient, Telus could be the more rewarding option down the road.
You can’t go too far wrong with either one. But knowing your investment goals will help you choose the better fit. In June, with markets still uncertain, BCE is the safer dividend giant. Telus is the calculated growth play. Both are Canadian staples, but only one is best for you right now.
