For years, Canadian dividend investors treated the Big Three telecoms like interchangeable cash machines.
Whenever new money landed in a Tax-Free Savings Account (TFSA), BCE (TSX:BCE), Rogers and Telus (TSX:T) were the automatic picks because of their big headline yields.
But a high yield isn’t the same as a safe one. Dividend investing comes down to capital preservation, balance sheet strength, and whether a business is growing steadily.
Over the last 15 months, BCE and TELUS were forced to cut dividend payouts because of weak balance sheets, years of expensive network spending, and rising interest payments. The two Canadian tech stocks have grossly underperformed the broader markets over the past decade.
I think now is a good time to consider investing in Canada’s fourth national carrier, Quebecor (TSX:QBR.B).
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Why Canadian telecom stocks are not all equal
Quebecor spent decades as a Quebec-focused cable and media company built around its Videotron brand. It then acquired Freedom Mobile from Shaw.
The deal turned Quebecor into a national wireless competitor, and it has been taking share in Ontario, Alberta, and British Columbia with lower-priced plans ever since.
The company’s second-quarter 2026 results show the strategy is still working.
According to Quebecor’s earnings call, free cash flow climbed 12% year over year to $419 million, and EBITDA (earnings before interest, tax, depreciation, and amortization) excluding stock-based compensation rose 10% to $691 million.
Net income attributable to shareholders jumped 24% to $271 million.
Quebecor added 53,200 net mobile subscribers in the quarter, up sharply from 28,800 in the first quarter, while blended mobile average revenue per user (ARPU) grew for a third straight quarter to $35.62.
Most telecoms have to choose between adding customers and raising prices per customer. Quebecor is managing to do both at once, which is a meaningful edge over BCE stock and Telus stock right now.
BCE stock and Telus stock carry higher debt risk
BCE and Telus spent billions building fiber networks and buying 5G spectrum, leaving them exposed as interest rates climbed.
Comparatively, Quebecor ended Q2 with a net-debt-to-EBITDA multiple of 2.87 times, the lowest among Canadian telecom stocks. Management also repaid $500 million on a term loan tranche during the quarter, made an early $100 million debt payment in July, and opened a US$1 billion commercial paper program to diversify funding at attractive short-term rates.
CEO Pierre Karl Peladeau noted the company has never issued hybrid debt or used financial engineering to improvise its numbers.
BCE and Telus still offer a higher yield than Quebecor, which currently provides a yield of 4.3%. While BCE and Telus have slashed payouts, Quebecor’s board raised its quarterly dividend to $0.45 per share from $0.40, a 12.5% increase, and renewed its share buyback program.
Management described the move as reflecting confidence in steadily growing cash flow and noted that the payout ratio still sits near the low end of its target range, leaving room for further increases.
Over the last 10 years, the TSX dividend stock has returned more than 300% to shareholders, after accounting for reinvestments.
The company is also investing in future efficiency. It raised its stake in Etiya, a software firm that runs Quebecor’s digital billing systems, and expects artificial intelligence (AI) tools built into that platform to lower costs across the business over time.
The bottom line
BCE and Telus remain household names, but their heavy debt loads and slower growth make them look more like defensive bond substitutes than compounding dividend growers.
Quebecor offers a rarer combination in this sector: expanding market share, a low-risk balance sheet, and a dividend that is growing because the business is growing.
For investors who want income and total return, Quebecor still looks like the more sustainable telecom bet.
