Long-Term Hold? Why TELUS Likely Beats BCE Over the Next Decade

If you’re looking at the big Canadian telecoms for a long-term hold, the natural comparison is BCE (TSX:BCE) and TELUS (TSX:T). Both are dividend heavyweights, both have national networks, and both have been fixtures in investor portfolios for decades. But looking out over the next 10 years, one might just have the edge.

BCE

BCE has had a tough stretch, with its share price down more than 28% over the past year. The second quarter (Q2) of 2025 showed revenue up 1.3% year over year to just over $6 billion, and net earnings rose 6.6%. That’s a decent showing, but adjusted earnings per share (EPS) EPS fell almost 20%. Furthermore, adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) slipped 0.9% as higher costs took a bite.

Free cash flow did grow 5% thanks to lower capital spending, but that capital expenditure (capex) reduction came partly because of regulatory decisions that have discouraged further fibre expansion. The dividend stock is still investing, with big artificial intelligence (AI) and media initiatives. Plus, it recently closed its Ziply Fiber acquisition in the United States. However, a heavy debt load above $37 billion, a high payout ratio, and regulatory headwinds remain big question marks.

T

TELUS, meanwhile, hasn’t been immune to sector challenges, but its share price is essentially flat over the past year, a win in this market. Its Q2 2025 results showed operating revenue up 2% to $5.1 billion, with adjusted EBITDA up 4%. The dividend stock added 198,000 total mobile and fixed customers, including 167,000 mobile phone and connected devices, and kept postpaid churn at 0.90%. This was its twelfth consecutive year under 1%.

That kind of loyalty is rare in telecom and suggests TELUS found the right mix of service and product value. Its health division is also growing fast, with revenue up 16% and EBITDA up 29%, and now reaches 157 million lives globally. This diversification could be a major growth driver over the next decade, especially as healthcare digitization accelerates.

Comparing the two

Where BCE and TELUS differ most is in growth vision. BCE’s strength is its scale in traditional telecom and media, with sports content deals, AI infrastructure ambitions, and a sprawling network footprint. But much of BCE’s growth still depends on the same core telecom services that face intense competition and regulatory pressure. TELUS has a similar telecom backbone, but it’s pairing that with adjacent growth platforms like TELUS Health, TELUS Agriculture, and digital solutions. These businesses may not match telecom’s margins yet, but they tap into large, growing markets with less regulatory drag.

Risks exist for both. TELUS’s diversification means execution risk. If its health and digital bets don’t deliver, growth could lag. BCE’s risk is more about market maturity and capital allocation. Here, if regulatory and competitive pressures persist, sustaining growth and the dividend could be tougher. Both carry high debt levels, making interest rate trends worth watching.

Bottom line

For income investors, BCE offers a higher forward yield at around 5.2% versus TELUS at about 7.5%, but yield alone doesn’t win the decade-long race. If free cash flow grows steadily and debt comes down, TELUS could be in a better position to keep increasing its payout while also delivering capital gains. BCE’s dividend history is impressive, but its current payout ratio and slower growth outlook may limit upside. Investing in each could be a strong option, with $5,000 towards each bringing in an annual income of $624.41.

Over 10 years, the dividend stock that pairs stable income with consistent earnings and multiple growth levers will likely come out ahead. TELUS’s track record in customer retention, its push into new markets, and its focus on balance sheet health could make it the more rewarding choice for patient investors willing to look past short-term noise.