The artificial intelligence (AI) boom needs more than power and chips. It also needs networks that are fast, reliable, and secure. That’s where Rogers Communications (TSX: RCI.B) starts to look more interesting than many investors may think.
Source: Getty Images
RCI
Granted, Rogers stock is not a pure data centre stock. It doesn’t own the kind of high-growth data-centre portfolio that would make it trade like a digital infrastructure company. In fact, Rogers sold its nine Canadian data centres to InfraRed Capital Partners, which launched Qu Data Centres to operate the platform.
But Rogers didn’t walk away from the theme. It continues to provide network connectivity to those sites and sell data-centre services on behalf of the new owner. That gives the company a practical role in the data centre era: fibre, enterprise connectivity, cloud access, wireless, internet, and business networks.
That role could become more valuable as AI infrastructure spreads across Canada. Data centres need electricity, land, cooling, and servers. But they also need to connect with customers, cloud systems, corporate networks, and other facilities. A data centre without strong connectivity is just a very expensive building full of machines.
Numbers don’t lie
Rogers already owns one of Canada’s largest telecom networks. It serves wireless, cable, internet, business, media, and sports customers across the country. Its business division works with companies that need secure connectivity, cloud access, private networks, IoT, and managed services. Those needs should only grow as more Canadian companies use AI tools, move workloads into the cloud, and demand faster data movement.
The dividend adds another reason to look at the stock now. Rogers pays $0.50 per share quarterly, or $2 annually. At recent prices, that puts the yield around 3.9%. For a Canadian telecom with national scale, that’s a useful income stream even with a $7,000 investment.
| COMPANY | RECENT PRICE | NUMBER OF SHARES | ANNUAL DIVIDEND | ANNUAL TOTAL PAYOUT | FREQUENCY | TOTAL INVESTMENT |
|---|---|---|---|---|---|---|
| RCI.B | $51.87 | 134 | $2.00 | $268.00 | Quarterly | $6,950.58 |
The payout also has support from cash flow. In the first quarter of 2026, Rogers generated free cash flow of $776 million, up 32% from last year. Total service revenue rose 10% to $4.9 billion, while adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) climbed 5% to $2.4 billion. The company also invested $808 million in capital expenditures, mostly in its networks.
Looking ahead
Those numbers show why Rogers stock can appeal to dividend investors. It owns essential infrastructure, generates large cash flow, and still has ways to improve the balance sheet after the Shaw acquisition. Management also raised its 2026 free cash flow outlook after cutting capital-spending expectations, which could help with debt reduction and dividend stability.
Rogers stock doesn’t look expensive compared with many defensive income names. Telecom shares have faced pressure due to intense wireless competition, pricing pressure, heavy debt, regulatory constraints, and investor frustration with slow dividend growth. Those concerns are real. But they also explain why Rogers stock may offer better value today than it did when telecom stocks were more popular.
The data centre upside is not about Rogers suddenly becoming an AI landlord. Investors should be clear on that. The upside comes from more data moving across networks, more businesses needing secure connectivity, and more cloud and data-centre traffic relying on telecom infrastructure. That’s a slower, steadier opportunity. It fits Rogers better than a flashy AI label ever would.
Bottom line
Rogers stock has the kind of assets that become more important as the digital economy expands. Consumers need mobile and internet service. Businesses need connectivity. Data centres need network links. AI needs data to move fast and securely.
For investors seeking income with a realistic data centre angle, Rogers stock looks worth considering. The dividend pays investors while they wait, and the network upside gives the stock a timely reason to be back on the radar.
