This Is the Best Canadian Telecom Stock to Buy Now

Quebecor is a clear winner as the best Canadian telecom stock to own for some time now. That said, it appears to have little margin of safety at current levels.

Kay Ng

Author Bio Kay graduated from the University of British Columbia with a Bachelor of Science in Computer Science and furthered her studies in financial markets, finance, and financial accounting. She began investing in dividend stocks in 2008, turning an early interest into a lasting passion. Over the years, Kay has refined her investment approach to focus on high-quality businesses, using fundamental analysis and valuation to identify long-term investment opportunities. Her investment research and articles have been featured in The Motley Fool, Sure Dividend, and Seeking Alpha. Outside of investing, Kay enjoys playing the piano, from popular songs learned by ear to challenging classical compositions. Her favourites include Fantaisie-Impromptu by Frédéric Chopin and La Campanella by Franz Liszt. Education Bachelor of Science (BSc) in Computer Science, University of British Columbia Further studies in financial markets, finance, and financial accounting Areas of Expertise Dividend stocks, fundamental analysis, company valuation, quality investing, long-term investing, business fundamentals, and identifying investment opportunities in high-quality companies. Social Media Profiles LinkedIn Favorite Investment Quotes “The best way to measure your investing success is not by whether you’re beating the market but by whether you’ve put in place a financial plan and a behavioral discipline that are likely to get you where you want to go.” — Benjamin Graham “A market downturn doesn’t bother us. It is an opportunity to increase our ownership of great companies with great management at good prices.” — Warren Buffett

Published September 27, 2025 9:15 am EDT

After peaking in 2022, Canadian telecom stocks have hit a rough patch. The country’s Big Three players — BCE (TSX: BCE), Rogers Communications (TSX: RCI.B), and TELUS (TSX: T) — have delivered disappointing returns, badly underperforming the broader Canadian market. In contrast, a smaller but increasingly dominant rival, Quebecor (TSX: QBR.B), has surged ahead.

So, which telecom stock is the best to buy right now? The answer is becoming increasingly clear.

voice-recognition-talking-to-a-smartphone — Source: Getty Images

Big telecoms under pressure

Over the last few years, major Canadian telecoms have been squeezed by a combination of tighter government regulations, rising competition from Quebecor, elevated interest rates, and a saturated market offering limited growth. As a result, investor sentiment has turned sour — and the numbers show it.

From 2022 to mid-2024, while the Bank of Canada (BoC) raised the policy interest rate to a punishing 5.0%, the Big Three telecoms delivered an average return of -16.7%. During the same time, Quebecor returned 17.4%, and the broader market (as measured by the iShares S&P/TSX 60 Index ETF) returned 12.9%.

Even after the BoC began cutting rates in June 2024 — bringing it down to 2.5% as of this month — the Big Three continued to struggle. Their average return since the start of the rate-cutting cycle is now an eye-watering -21.9%, with BCE dragging the average down after slashing its dividend by over 50% in May 2025. Excluding BCE, Rogers and TELUS still posted an average return of -14.2%, compared to Quebecor’s incredible 82% and the broader market’s 55%.

Comparing the fundamentals

Here’s a quick snapshot of the four telecom players based on their second-quarter (Q2) 2025 debt levels and earnings strength:

Company	Debt-to-Equity (Q2)	Debt-to-Assets (Q2)	Interest Coverage Ratio (TTM)
BCE	2.56x	53%	1.76x
Quebecor	3.15x	59%	3.82x
Rogers	4.04x	59%	2.02x
TELUS	2.18x	55%	1.66x

Despite having higher leverage, Quebecor’s interest coverage ratio — a key measure of debt sustainability — is the healthiest in the group. This gives it the flexibility to invest in growth and weather economic downturns more effectively.

Quebecor also benefits from being smaller and nimbler. With trailing 12-month (TTM) revenue of $5.6 billion, it’s about a quarter the size of BCE, but it has grown revenue 23% since 2021. By comparison, BCE’s revenue grew just 4.1% over the same period.

So, which stock is the best buy now?

Each of the Big Three has its appeal. TELUS offers a hefty 7.6% dividend, attractive for income-seeking investors. Rogers trades at a 13% discount and could represent a turnaround opportunity. BCE is now trading at a 10% discount and yields 5.5%, but its dividend cut has shaken investor trust.

However, if you’re looking for better growth prospects, Quebecor is probably the best Canadian telecom stock to buy. Its outperformance in a challenging environment, solid financial metrics, and continued expansion into the wireless market make it a relatively attractive option.

While the Big Three may eventually recover, Quebecor is already proving it can deliver — and investors have taken notice.

The only thing that might hold interested investors back from Quebecor is that the stock is fairly valued today, with little margin of safety. Perhaps waiting for weakness in a market correction is a safer way to go.