It’s hard to ignore a big dividend yield, especially when it comes from one of the most familiar Canadian telecom stocks. But after years of investing, I’ve learned that the biggest payout on the screen is not necessarily the one I should trust most. While I already own BCE (TSX: BCE) and still see long-term potential in the business, if I were putting fresh money into the sector today, I would definitely be looking beyond just yield. Right now, I’m more focused on cash flow, disciplined spending, and a clear path to lower debt, even if that means accepting slightly less dividend income today for a business with improving fundamentals.
In this article, I’ll explain why Rogers Communications (TSX: RCI.B) would be my dividend pick over Telus (TSX: T) or BCE today, despite offering the lowest yield of the three.
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Why Rogers stock gets my vote
The yield may be lower, but stable cash flow, spending trends, and improving operating momentum make Rogers an attractive Canadian telecom dividend stock today, in my opinion. As a diversified Canadian communications company, it handles wireless, cable, media, and sports operations.
Its shares currently trade at $48.49 per share with a market cap of $26.3 billion. At today’s price, the stock offers an annualized dividend yield of roughly 4.2%.
Despite the broader market rally, Rogers shares have slid roughly 6% so far in 2026. But that recent weakness does not tell the whole story. If its cash generation continues to improve, this recent weakness could turn into an attractive long-term opportunity for dividend investors.
Its latest quarterly results, released on July 22, strengthened my confidence in that outlook. In the second quarter, Rogers posted total revenue of about $5.6 billion, up 8% year over year (YoY). Its total service revenue also climbed 8% to roughly $5.1 billion, helped mainly by growth in Media and Cable.
On the profitability side, the company’s adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) rose 3% YoY to about $2.4 billion. As a result, Rogers reported adjusted earnings of $1.15 per share, up 1% from a year ago.
More importantly for income investors, its free cash flow climbed 6% YoY to $982 million. Lower capital expenditures and higher adjusted EBITDA helped drive that growth. Meanwhile, Rogers spent $695 million on capital projects, down 16% YoY, while its capital intensity fell to 12.4% from 15.9% a year ago.
That strong cash flow is the first big reason I would favour Rogers over its higher-yielding telecom peers today.
Why I prefer Rogers to Telus and BCE
Telus currently offers an annualized dividend yield of about 5.5%, but it recently reset its quarterly dividend by 55% as management shifts more cash toward debt reduction. This reset came after Telus reported a 1% YoY decline in service revenue in the second quarter and a 2% drop in adjusted EBITDA.
While the dividend reset may help Telus strengthen its balance sheet over time, I would still like to see clearer operating improvement before choosing it mainly for income.
BCE offers an even higher annualized dividend yield of 5.7%. Its latest quarter was stronger in some areas, with revenue rising 1.5% YoY and adjusted EBITDA increasing 1% to about $2.7 billion. However, the pressure showed up in cash flow as BCE’s free cash flow fell 9.5% YoY to about $1 billion, with capital expenditures jumping over 41%.
Rogers has leverage risk of its own, but its direction has improved. The company’s debt leverage ratio fell to 3.8 at the end of June from 4 at the end of 2025. Continued free cash flow growth could give it more room to reduce debt further.
Putting it all together, Rogers gives me a better balance today. While Telus and BCE offer higher yields, Rogers combines a respectable dividend with stronger recent revenue growth, improving free cash flow, and lower capital intensity.
