Surprise best bet Canadian telecom for 2026

This under-the-radar stock outperforms Rogers, BCE and Telus

Overall, 2025 was a good year for Canadian investors. Despite Donald Trump’s trade wars and the loss of manufacturing jobs in the auto and steel industries, the S&P/TSX Composite Index hit new highs and is up about 30% for 2025. That’s much better than either the S&P 500 or the Dow.

But, contrary to the old maxim, a rising tide doesn’t necessarily lift all boats. Several sectors and some prominent companies have been left behind, in some cases leaving people scratching their heads and wondering why.

Major telecom players lag

The Communications sub-index is an example. It’s in the black for 2025, up 14%. But that is well behind the Composite. The main reason for the underperformance is that two of its largest components have lost ground. BCE Inc. (TSX: BCE) has been struggling for years – the stock lost 12% in 2023 and 36% in 2024. The shares are finally showing signs of bottoming, off about 1% in 2025, but by now many investors have sold.

BCE has been hit by intense competition, reduced immigration (fewer new customers), and a huge debt load as it rolled out its fibre optic network. Through all this it struggled to maintain its bloated dividend. It finally abandoned that effort in May, slashing the payout by more than half. The shares have stabilized since but are still below their opening level last January.

Telus Inc. (TSX: T) faced a similar dividend problem. Its stock has also lost ground for three years in a row, although it didn’t fall as much as BCE. Telus announced recently that it is freezing the dividend at current levels for the foreseeable future, with the savings earmarked for debt reduction and to invest in growth areas of its business, such as Telus Health.

But even with the dividend freeze, the company’s payout looks high. The quarterly outlay is $0.4184 per share ($1.6736 per year) to yield over 9% at a recent price of $17.89. Don’t be surprised if the company makes further adjustments in 2026.

The best-performing stock among the big three telecoms is Rogers Communications Inc. (TSX: RCI.B), which has gained about 17% this year. But that follows losses in 2023 and 2024 (-28.75% last year), so it too has had problems. Rogers has not increased its dividend since early 2019 and current yields 3.9%.

Quebecor outperforms

The hottest stock in the group is the smaller Quebecor Inc. (TSX: QBR.B). Based in Montreal, it provides cable and communications services to over four million customers in Quebec and, increasingly, across Canada. The emergence of Quebecor as a national player is in part due to its acquisition of Freedom Mobile, the popular wireless service that was sold off as a condition of the takeover of Shaw Communications by Rogers in 2023.

Quebecor stock is up 65% in 2025. That’s a great performance in a lagging sector. The stock pays a quarterly dividend of $0.35 ($1.40 a year), to yield 2.7%. The p/e ratio is 14.46.

There is nothing to suggest a quick recovery for BCE or Telus in 2026. If you own the stocks, or are considering buying them, it should be for cash flow only. Rogers looks like the better bet among the big three. Its dividend is sustainable, the yield is reasonable, and it trades at a very low p/e of 4.16.

But Quebecor has momentum right now and is trading just below its all-time high. It’s my top communications choice for 2026 and we’re adding it to my Internet Wealth Builder newsletter recommended list.

Gordon Pape is one of Canada’s best-known personal finance commentators and investment experts. He is the publisher of The Internet Wealth Builder and The Income Investor newsletters, which are available through the Building Wealth website.

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Notes and Disclaimer

Content © 2026 by Gordon Pape Enterprises. All rights reserved. Reprinted with permission. The foregoing is for general information purposes only and is the opinion of the writer. Securities mentioned carry risk of loss, and no guarantee of performance is made or implied. This information is not intended to provide specific personalized advice including, without limitation, investment, financial, legal, accounting, or tax advice. Always seek advice from your own financial advisor before making investment decisions.

Image: iStock.com/Igor Vershinsky