Canadian telecom stocks have long been regarded as some of the best long-term investments. That’s because they offer an increasingly necessary product, serve a large segment of the population, and offer handsome dividends.
But which of the big three Canadian telecom stocks is the best buy right now? There are plenty of factors to consider, so let’s take a look at a case for investing in each.
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The case for Telus
Telus (TSX: T) is the smallest of the three telecoms.The company offers nationwide wireless service, while its wireline business is concentrated in Western Canada and parts of Quebec.
In terms of a dividend, Telus offers one of the higher yields on the market. As of the time of writing, Telus offers a yield of 6.28%. Despite the high payout, that yield reflects a 55% cut to the dividend that occurred back in July.
Telus’ decision to slash its payout followed its December 2025 announcement that it would pause dividend growth. The new quarterly payout works out to $0.1875 per share, and management expects the reduction to save approximately $2.7 billion through 2028 for debt reduction.
That gives Telus more financial breathing room. But does that make the business a good buy?
Telus’ operations still need improvement. In the most recent quarter, adjusted EBITDA fell 2%. Telus also lowered its full-year outlook to an adjusted EBITDA decline of 2% to 4%. The company now expects $1.8 billion in free cash flow for 2026.
The case for BCE
Depending on your metric, BCE (TSX: BCE) is either the largest or the second-largest of the telecoms. The company offers the same subscription-based offerings as Telus, but to a larger audience.
In terms of a dividend, BCE offers an attractive 6.20% yield. In fact, BCE is one of the longest payers in Canada, with a dividend history that spans over a century.
That being said, like Telus, BCE was forced in recent years to cut costs and slash its dividend. BCE reduced staff and divested assets. It also invested in growth opportunities, including the acquisition of U.S.-based Ziply Fiber.
In the most recent quarter, revenue rose 1.5%, while adjusted EBITDA increased 1%. Ziply Fiber contributed to that growth, but adjusted EBITDA in the Canadian communications business declined 3.1%. Free cash flow fell 9.5% to approximately $1.04 billion, largely because capital spending increased.
BCE also announced an agreement this week to sell a 49.9% interest in a new wireless tower company to La Caisse for $2.45 billion. The deal supports BCE’s capital allocation strategy, including a target net debt leverage ratio of 3.5 times by the end of 2027.
The improvement is there, but asset sales provide a finite source of cash.
The case for Rogers
The last of the big three Canadian telecom stocks is Rogers Communications (TSX: RCI.B).
Like its peers, Rogers offers national subscription-based services as well as a complementary media arm. The company pays a quarterly dividend, and like its peers, suspended annual increases to that payout.
Rogers stopped raising its dividend annually in 2016. It increased the payout by 4.2% in 2019 and has held it steady since.
As of the time of writing, Rogers offers a yield of 4.48%. That’s lower than its peers, but Rogers’ recent financial results help explain its appeal.
In the most recent quarter, Rogers saw free cash flow hit $1.37 billion, up 65%. Over the past nine-month period, that works out to over $3.1 billion. Rogers’ debt leverage ratio also improved to 3.7 times from 3.8 times in the preceding quarter.
Canadian telecom stocks: Which is the best right now?
Each of the Canadian telecom stocks offers something, but given the choice, my pick is Rogers right now. Its recent cash generation and debt reduction give me more confidence in its progress than in either Telus or BCE.
BCE would be my second choice, but in my opinion, Telus needs more evidence of stabilization.
For now, I would accept less income from Rogers in exchange for the progress it has demonstrated.
