Today, we will take an in depth look at all major Canadian Telecom players, as well as their DRIP and SPP plans.

First of all, of all the six major Canadian telecom companies, half of them do not currently offer a DRIP and SPP plan:

  • Rogers
  • Manitoba Telecom
  • Cogeco Cable

We rank the remaining of three companies based on the common criteria for a good DRIP investment.

  • Telus is our top pick, because of its low PE ratio and 5% discount on dividend reinvestment.
  • BCE is the 2nd choice. Dividend yield is pretty attractive. Stock is only value 14 times of earning. Also the oldest Canadian telecom company has the long history of paying dividend.
  • Shaw communication is not on the recommendation list. It lacks the basic flexibility in DRIP investment without offering the OCP feature. If you cannot investment more through OCP/SPP, your whole portfolio is capped, defeating the whole purpose of DRIP investment.
Canadian Telecom Symbol Share price (March 256, 2010) Dividend yield PE Discount on dividend reinvestment OCP/SPP Transfer agent
Telus T  $    37.32 5.07% 11.93 5% $100-$20,000 Computershare
BCE BCE  $    30.11 5.66% 14.51 n/a 0-$20,000 Computershare
Shaw SJR.B  $    20.09 4.38% 16.47 no n/a CIBC Mellon
Rogers RCI.A  $    35.24 3.63% 14.8  do not offer DRIP and SPP
Manitoba Telecom MBT  $    31.54 8.14% 19.89 do not offer DRIP and SPP
Cogeco Cable CJR  $    42.34 1.34% n/a do not offer DRIP and SPP

16 Responses to “Canadian Telecom DRIP and SPP comparison”

  1. Good article Thank you so much

  2. sapphire says:

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    the report – most informative thanks

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  10. Pokerspiel says:

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    - Johnson

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