Even with only a few years of investing experience, you may already know that a cheap stock isn’t always a bargain, and a high dividend yield doesn’t necessarily make it the best income investment. That is exactly what makes Telus (TSX: T) and BCE (TSX: BCE) worth comparing this August.
Telus has taken a beating in 2026, with its shares now sitting close to their 52-week low following a dividend reset and weaker full-year guidance. BCE has faced its own challenges, but its latest quarter brought modest growth in revenue, adjusted earnings, and fibre subscribers. After both Canadian telecom giants reported their latest results, the difference between them became much clearer.
In this article, I’ll compare Telus and BCE to see which is the better buy this August.
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BCE looks stronger right now
For investors looking for the better mix of dividend income and recent business momentum, BCE appears to have the edge right now. The company provides wireless, broadband Internet, television, media, and business communication services across Canada. Its acquisition of Ziply Fiber has also given the telecom giant exposure to the U.S. fibre market.
BCE stock currently trades at $32.48 per share with a market cap of $30.3 billion and an annualized dividend yield of roughly 5.4%.
BCE shares are down about 3.3% over the last year, but the stock has gained roughly 7.3% in the last month. That recent strength comes after a fairly encouraging second quarter.
The company’s revenue in the latest quarter climbed 1.5% year-over-year (YoY) to $6.2 billion. Its adjusted earnings rose 3.2% to $0.65 per share, while adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) inched up by 1% to $2.7 billion.
Several parts of the business helped support those results. Ziply Fiber contributed to service revenue growth, while Bell Media also posted stronger performance. Fibre demand remained healthy as residential fibre-to-the-home net subscriber additions increased 14.5% YoY to nearly 55,000. Similarly, its Crave subscriptions climbed 23% to around 5.1 million.
BCE is putting more money into Bell AI Fabric data centres, fibre expansion, and artificial intelligence (AI)-powered enterprise solutions. Those investments pushed its capital expenditures higher and contributed to a 9.5% YoY decline in free cash flow to about $1 billion.
Nonetheless, BCE maintained its 2026 guidance and kept its quarterly dividend at $0.44 per share. Taken together, the company’s improving operating trends, fibre growth, and steady dividend make BCE an attractive telecom stock for investors seeking income without taking on as much turnaround risk.
Telus has more rebuilding ahead
Telus still has long-term potential, but its latest results suggest investors may need more patience before the stock becomes the stronger choice. In the second quarter, Telus reported $4.9 billion in operating revenue, down about 2% YoY, while its operating revenue and other income fell 3%. More importantly, its adjusted earnings per share dropped 27% to $0.16.
In addition, Telus recently lowered its outlook for 2026 and now expects consolidated service revenue growth to range from flat to down 2%, while adjusted EBITDA is expected to decline between 2% and 4%.
The company also reset its quarterly dividend by 55% to $0.19 per share. That move is expected to generate about $2.7 billion in cumulative cash savings through 2028, with the money directed toward reducing debt.
While the dividend cut is painful for income investors, it should give Telus more room to repair its balance sheet. The company is targeting net debt to adjusted EBITDA of about 3 times or lower by the end of 2028.
Telus vs BCE: Which stock is a better buy this August?
Considering all these factors, Telus could become a more compelling choice for patient investors if its deleveraging plan gains traction and operating performance improves. Right now, though, Telus stock carries more execution risk than BCE, making BCE stock the stronger buy for investors who want income today without giving up potential upside.
