With increased mortgage funds and tighter family budgets, Canadians are in search of methods to make their cash stretch just a little additional. A current TD Financial institution survey discovered that 73% of mortgage renewers plan to chop spending to maintain up with funds, and 31% are even pulling cash from investments. Whereas this financial strain can really feel discouraging, it additionally shines a highlight on investments that supply regular earnings and long-term potential. Rogers Communications (TSX:RCI.B) is a kind of uncommon dividend shares that appears particularly enticing proper now, down 33% and prepared for affected person traders.
About Rogers
Rogers is certainly one of Canada’s largest telecom corporations, providing wi-fi, cable, and web providers throughout the nation. It’s a family identify, whether or not you’re watching Blue Jays video games on Sportsnet or streaming in your Rogers-powered Wi-Fi. And whereas it confronted its fair proportion of challenges not too long ago, the enterprise fundamentals stay robust.
As of writing, shares of Rogers commerce round $36.67, down about 33% from highs reached earlier than the pandemic and the prolonged technique of buying Shaw Communications. That merger is now full, and Rogers emerged with an even bigger buyer base, extra infrastructure, and a firmer grip on the Western Canadian market. It’s additionally now the biggest wi-fi firm within the nation.
Into earnings
In its most up-to-date earnings report for the primary quarter of 2025, Rogers reported service income development of two% and adjusted earnings earlier than curiosity, taxes, depreciation, and amortization (EBITDA) development of two%, with wi-fi EBITDA margins hitting 65%, a determine that leads the Canadian business. Regardless of rising prices and a softer client spending atmosphere, the enterprise continues to generate wholesome money movement and function effectively. Its total EBITDA margin hit 45%, displaying that Rogers squeezes out strong efficiency even underneath strain.
And it’s not simply the operational efficiency that’s value noting. Rogers made progress on its stability sheet, lowering its internet debt leverage ratio to three.6 occasions, down from 4.5 occasions on the time of the Shaw merger. A $7 billion fairness funding from Blackstone additionally helped stabilize its monetary footing, offering flexibility and confidence shifting ahead.
Delectable dividends
Dividends are a significant a part of why traders purchase into Rogers. The dividend inventory at present pays an annual dividend of $2 per share, which supplies the inventory a yield of about 5.5% at immediately’s worth. That’s effectively above the TSX common and particularly enticing in this sort of atmosphere, the place fixed-income returns are nonetheless catching up. Rogers hasn’t reduce its dividend by means of the pandemic or the merger course of, making it a dependable selection for income-seeking traders. In reality, $20,000 may earn you round $1,088 at writing in annual dividend earnings!
| COMPANY | RECENT PRICE | NUMBER OF SHARES | DIVIDEND | TOTAL PAYOUT | FREQUENCY | INVESTMENT TOTAL |
|---|---|---|---|---|---|---|
| RCI.B | $36.73 | 544 | $2.00 | $1,088.00 | Quarterly | $19,991.12 |
One more reason Rogers deserves a more in-depth look is its undervaluation. Analysts protecting the inventory have a 12-month common worth goal of $49.74. That implies greater than 35% upside from the place the inventory trades immediately. The inventory’s low price-to-earnings a number of makes it a possible cut price, particularly for traders who imagine the telecom sector will get better as client spending improves and price synergies from the Shaw merger kick in.
Backside line
In a market filled with noise and uncertainty, it’s good to come back throughout a dividend inventory with a transparent path to stability and earnings. Rogers might not be the flashiest identify on the TSX, however that’s form of the purpose. It supplies a vital service, collects recurring income, and pays a beneficiant dividend whereas buying and selling at a reduction.
So, in the event you’re one of many many Canadians feeling the pinch proper now, think about this: a $20,000 funding in Rogers inventory immediately may earn you about $1,088 a 12 months in dividends with out touching your principal. Reinvest that earnings, maintain on by means of the restoration, and you could possibly see significant development on high of that earnings.
