This 5G technology stock in Canada has a trailing 12-month return on equity of 136.99%. Return on equity is what stock market investors use to grade company executives on management effectiveness. Shareholders want to invest in the highest return assets possible to generate the most wealth from their long-term savings.
Quebecor Inc (TSX:QBR-B)(TSX:QBR-A) has a higher than average return on equity, well exceeding shareholder expectations. The year 2020 will be an even better year for the telecommunications stock.
Samsung Electronics is also betting on Quebecor with a new contract. On Friday, Samsung announced that they made a deal with Videotron, a subsidiary of Quebecor, to supply equipment for its wireless network in Quebec and Ottawa.
The deal should be profitable for both Samsung and Quebecor, Videotron’s TSX-traded parent company. The 5G rollout has already cost billions of dollars to deploy. Samsung will provide Quebecor with low-cost equipment from South Korea, which remains safe from the Huawei security controversy.
Superb stock market price performance
In the past year, the price of Quebecor stock rose 14.43%, a pace that does not lead to worries about overvaluation. Yet, the price momentum is strong enough to feel comfortable that the stock asset will continue to appreciate.
Shareholders have reacted positively to the company’s quarterly earnings updates for the past five years. If the stock price didn’t appreciate after company earnings updates, then the market value remained reasonably stable until the next quarter.
Predictable investor trading behaviour is something that you want to look for in stocks to buy. If a company reports growing losses, but investors drive up the price anyway, stay away from the stock. Likewise, if a company announces growing sales and profit, and shareholders react with increased demand for shares, you know that the stock is likely a safe bet for your Tax-Free Savings Account (TFSA) or Registered Retirement Savings Plan (RRSP).
Growing dividend payments and stock market gains
Canadian savers should buy stock in 5G telecommunication companies exactly like Quebecor. In addition to steady dividend payments, the price of Quebecor stock rose 111.4% in the past five years, meaning that the total return on these shares exceeded the initial investment.
The good news is that Quebecor is still cheap enough to buy for your TFSA at only $33 per share. Moreover, the quarterly dividend of $0.1125 per share yields 1.36% annually at the current market value. The combined returns from dividends and capital gains from the 5G rollout should boost your TFSA in the next year.
5G technology stocks are top market movers in 2020
Next year, the 5G deployment will officially take flight in Canada. The major telecommunications giants Telus, Rogers, and Bell have already spent billions on upgrading systems and equipment in preparation for the launch.
If you haven’t already invested in the 5G rollout, you should buy stock in telecommunication companies before the new year to share in the profit from this decade’s technological innovation. Quebecor is a top option because it is cheap, pays a dividend, and you can trust the company to take care of you 20 years from now when you retire.
