1 Practically Perfect Canadian Stock Down 10% to Buy Now for Lifelong Income

Do you need some ideal income coming your way? Consider this practically perfect stock.

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When investors hear “practically perfect stock,” they often picture fast growers with sky‑high multiples. But perfection doesn’t always mean flashy. Sometimes, it’s about consistency, scale, and resilience. Take Rogers Communications (TSX:RCI.B). Its price is down from recent highs at about 10% off its 52‑week peak. But for someone seeking lifelong income with steady growth, it might be worth buying now.

About Rogers

Rogers is one of Canada’s Big Three telecommunications companies. It provides wireless, cable, and media services. In its first quarter of 2025, the Canadian stock posted solid results. Revenue grew 2% to $4.98 billion, and adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) also rose 2% to $2.254 billion. Net income climbed 9% to $280 million, or $0.50 diluted earnings per share (EPS). Cash from operating activities increased 10% to $1.296  billion, while free cash flow held steady at $586 million.

That growth didn’t happen by chance. Rogers added 57,000 new wireless and retail internet subscribers in the quarter. It also sealed a 12‑year deal with the National Hockey League (NHL) for national media rights. And it was named Canada’s most reliable wireless and internet provider, according to Opensignal.

Its dividend remains a cornerstone for income investors. The Canadian stock declared $0.50 per share this quarter, paid quarterly, coming to $2 annually. At current prices near $45.75, the annualized dividend translates to a yield of about 4.95% . That’s attractive compared to most income alternatives, especially with the credibility of Canada’s telecom infrastructure backing it. In fact, a $7,000 investment would bring in $304 annually!

COMPANYRECENT PRICENUMBER OF SHARESDIVIDENDTOTAL PAYOUTFREQUENCYTOTAL INVESTMENT
RCI.B$45.75152$2.00$304.00Quarterly$6,966.00

Considerations

Of course, there are areas to watch. Wireless revenue and EBITDA grew only 2%, showing mature markets are holding back growth. Cable revenue slipped 1%, even though its margins improved to just over 57%. And the big expense item remains capital spending, as Rogers invested $978 million on network improvements in the quarter.

The telecom environment in Canada is competitive, and pricing pressure could weigh on future earnings. Media exposure, including sports broadcasting, is a strategic lever, but viewer interest or rights costs could shift. That said, Rogers continues to invest in new services like 5G Cloud RAN, Xfinity Storm‑Ready WiFi, and streaming bundles. Those lines are still gaining traction and may offset competitive pressure over time.

Rather than chase growth stocks, some investors might prefer a reliable dividend that ticks every quarter. Rogers fits that profile. It delivers telecom stability and incremental gains in media. It pays a strong yield, and it’s bought back its debt leverage while investing in growth technologies.

Bottom line

So, is Rogers “practically perfect?” It depends on your goals. You won’t find explosive returns here. You will find a business with 11.9 million wireless customers, 23,000 new net internet subscribers in one quarter, and national media rights. You’ll find a reliable dividend that, at a 4.95% yield, speaks to income-focused investors. And you’ll find a company paying down debt and investing in its network.

If you believe Canada’s telecoms can compete with each other, invest in new tech, and maintain consumer loyalty, then buying now while the Canadian stock is slightly down could make sense. It won’t correct all uncertainties, but it could smooth out volatility with its cash flow and scale.

Buying Rogers today means banking on stability and income. It’s about embracing consistency over fireworks. For a long‑term strategy focused on reliable income, this could be that one “practically perfect” Canadian stock worth buying now.

Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool recommends Rogers Communications. The Motley Fool has a disclosure policy.

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