Canada’s telecom stocks have historically been one of the most defensive options for investors. But among those three large telecoms, which is the best stock to buy today?
All three provide an increasingly necessary service that customers use daily. Each also offers investors an income stream.
Here’s a look at what each offers to help answer the question of which one is the best stock to buy today.
A person stands in front of several doors representing different U.S. stock options for Canadian investors.
BCE: Growth comes with a spending bill
The first option for investors to look at is BCE (TSX: BCE). BCE has provided telecom services far longer than its peers. The company has paid dividends without fail for over a century. Today, the telecom offers a yield of 6.2%, which makes it appealing for income-seekers.
BCE also appeals as a growth pick. The company’s acquisition of U.S.-based Ziply Fiber represents an opportunity for long-term growth in the massive, yet underserved fibre market in the U.S.
Turning to results, BCE saw revenue increase by 1.5% in the most recent quarter. The company also saw adjusted earnings per share increase by 3.2% while free cash flow declined by 9.5% to $1 billion. A key reason for that drop was capital expenditures on Bell AI Fabric data centres and Ziply’s network expansion.
Both investments could support future earnings growth.
For investors, BCE’s appeal depends on those investments producing returns at some point. And despite its investments in growth initiatives, BCE is still in a recovery state following steep cuts implemented last year. Part of those cuts included a 56% cut to its dividend.
Telus: Rebuilding the income case
Next up is Telus (TSX: T). Telus is smaller than BCE, but offers investors a higher yield that, as of the time of writing, works out to 6.4.
That yield does come with plenty of risks, including a recent dividend cut.
That reduction came in the form of a 55% cut to the quarterly dividend, bringing it to $0.19 per share. The reasons behind the cut were similar to BCE. Telus needed more room to manage its debt and strengthen its balance sheet.
Telus expects those reductions to generate up to $2.7 billion in cash savings through 2028, directed to reducing debt.
The recent cut gives Telus more breathing room, and the company’s recent results show why that change was necessary. In the most recent quarter, adjusted EBITDA declined 2%, and Telus revised its full-year free cash flow outlook to $1.8 billion.
The good news for prospective investors is that the smaller dividend leaves more cash available to pay down debt and repair the balance sheet. And despite the cut, the 6.4% yield is more than competitive with other income-producing stocks on the market.
Rogers: A lower yield with more cash
Wrapping up the trio is Rogers Communications (TSX: RCI.B). Unlike BCE and Telus, which cut their dividends in recent years, Rogers has held its quarterly dividend at $0.50 per share since its last increase in 2019.
Investors have continued to collect income, but the payment hasn’t grown. As of the time of writing, Rogers offers a dividend yield of 4.5%.
In the most recent quarter, Rogers saw free cash flow hit $982 million, reflecting an increase of $57 million over the prior year. Dividends accounted for $270 million of that during the quarter. That leaves a huge portion available for other investments, such as growth and paying down debt.
Rogers expects free cash flow for the year to fall between $4.1 billion and $4.3 billion. The company’s debt leverage ratio at the end of the quarter was 3.8 times, compared with 4 times at the end of 2025.
For prospective investors, Rogers’ appeal lies in the cash left after paying that dividend.
Which is the best stock to buy today?
No stock is without risk, and that includes each of the big three telecoms mentioned above. And while each of the telecoms does offer appeal, Rogers is my preferred pick.
It does have the lowest yield, but it comes without the baggage of a recent dividend cut and with substantial cash generation.
BCE could become more attractive as its expansion spending translates into stronger cash flow. And Telus needs to demonstrate progress following its dividend reset.
