Telecom stocks can look simple, but the buy decision depends on a few unglamorous checks. You want steady demand, but also pricing power, manageable debt, and a regulator that does not change the rules. Watch churn, subscriber adds, and average revenue per user, because small moves there can swing profit. Then watch capital spending. Networks eat cash, so free cash flow matters more than headline revenue. So, where does Rogers Communications (TSX:RCI.B) sit?
Buy
If you want a buy case for Rogers stock, it starts with scale and stickiness. The one-stop communications and media operator runs wireless, cable, and sports and media, so it can sell a bundle instead of one phone plan. Over the last year, it leaned into MLSE and expanded its channel lineup, which helped drive a big jump in media revenue in the latest quarter. Live sports can keep subscribers loyal when competitors wave discounts. Rogers also said it plans to buy the remaining 25% of MLSE by 2026, which would deepen that content moat.
The buy case also leans on cash generation and network execution. In the fourth quarter of 2025, Rogers stock reported adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) of $2.7 billion, adjusted diluted earnings per share (EPS) of $1.51, and free cash flow of $1 billion. Plus it declared a $0.50 dividend. It highlighted a satellite-to-mobile launch and 5G advanced deployment, which signals it still invests to protect coverage and reliability. If it keeps translating that into lower churn and steadier pricing, the stock can reward patient buyers.
Sell
Now the sell case. Rogers stock operates in a Canadian market that can turn promotional fast, and management called out “unsustainable” discounting from peers that continued into January. It also pointed to slower population growth tied to immigration policy changes, which can cool the pool of new subscribers. In its fourth-quarter materials, annual revenue per unit (ARPU) fell 2.8% year over year to $56.43. If discounting drags on, you can end up owning a cash cow that produces less milk each year.
The sell case also includes leverage and complexity. Rogers stock ended 2025 with an adjusted debt leverage ratio of about 3.9, which limits flexibility if the competitive cycle turns ugly. It still needs heavy network spending and wants to keep investing in content, so it cannot cut its way to growth. If rates stay higher for longer, debt costs can cap upside even when the business stays stable.
Hold
The hold case sits in the middle, and it rests on the idea that the core business still works even if growth cools. Wireless service revenue stayed flat year over year in the fourth quarter, while wireless adjusted EBITDA rose 1% to $1.4 billion and produced a 67% margin. Cable also posted a 59% adjusted EBITDA margin, up 30 basis points. Not thrilling, but it shows discipline, which often matters more than flash in telecom.
Holding also makes sense because Rogers stock now has more levers than a plain telecom, but those levers take time to play out. It added 37,000 postpaid wireless subscribers in the quarter and 22,000 retail internet net additions, even in a cooler market, and it used sports and new channels to lift media results. If you own it today, you can hold for the dividend and watch whether pricing stabilizes, rather than forcing a sell in a noisy moment. In fact, here’s what even $7,000 could bring in.
| COMPANY | RECENT PRICE | NUMBER OF SHARES | ANNUAL DIVIDEND | ANNUAL TOTAL PAYOUT | FREQUENCY | TOTAL INVESTMENT |
|---|---|---|---|---|---|---|
| RCI.B | $50.82 | 137 | $2.00 | $274.00 | Quarterly | $6,952.34 |
Bottom line
For most investors, Rogers stock could be a buy if you want Canadian cash flow, a real dividend, and a company that can defend its base with bundles and network quality over time. It could also be a pass if you hate price wars, regulatory noise, and leverage in a capital-heavy sector. Valuation screens can look reasonable for a large telecom, but you should anchor on adjusted results and free cash flow, not one-off accounting swings.
