The market continues to stumble along, trying to erase the losses sustained earlier this year. That’s incredible considering that we are a few short months out from a major U.S. election, and people are still coming to terms with the COVID-19 pandemic. Adding to those woes, parents are still on the fence on letting children back into schools where social distancing is anything but normal. As an investor looking toward where to invest, where to reopen your portfolio can be a daunting task.
Fortunately, there are some stocks that are primed for growth, even in the midst of a global pandemic. One such investment is Rogers Communications (TSX:RCI.B)(NYSE:RCI). Here’s why investors should strongly consider reopening their portfolios with this telecom gem.
Telecoms are great investments
Amid a world of necessities, telecoms aren’t typically seen in the same light as traditional utilities. In reality, however, your telecom is just as important. The COVID-19 pandemic made millions of employees around the world adopt to the work-from-home environment.
That change was initially presented as a means to continue operations while maintaining a safe distance. What companies have found in recent months is that workers are just as productive when working from home. Some are even making the change permanent, ushering in a new era of the workplace.
As a result, your home internet connection is a must-have to do your daily job. The same could be said of maintaining, if not upgrading internet speeds to account for many students that will be taking classes online this fall in lieu of in-person attendance.
In the case of Rogers, the company boasts one of the largest and fastest nationwide networks, which should bode well for results. By example, in the most recent quarter, Rogers reported 5,000 net new internet subscribers. That growth was incredible considering that both stores and consumer activity were greatly reduced in the quarter.
Mobile is the wave of the future
The necessity to be connected at home is not the only reason why Rogers excels as an investment. Turning to Rogers’ wireless segment, the company boasts the largest network among the Big Three telecoms. Despite all retail locations remaining closed, in the most recent quarter, Rogers saw subscriber numbers remain flat.
In contrast, Rogers’ unlimited data plan offering continues to attract more customers. As of the most recent quarter, Rogers reported a 36% improvement over the same period last year, with 1.9 million subscribers.
Wireless connections have become a staple of our modern world. Our smartphones are no longer seen as phones with other apps. Rather, they are advanced devices with hundreds of apps including one for making calls.
Adding to that appeal is the fact that each new generation of devices introduces a new bevy of data-hungry apps. This is a key driver in the need to consume more data and offering unlimited add-ons.
Why now?
Rogers is a great investment for long-term growth. Both the wireless and internet segments will continue to generate revenue for Rogers irrespective of how long the pandemic lasts. This factor alone makes Rogers a more-defensive option than other investments attempting to weather the pandemic and reopen fully.
Additionally, I still haven’t mentioned the dividend. Rogers offers a quarterly distribution that works out to a respectable 3.57% yield. While the yield may seem lower than some of its Big Three peers, it’s by design. Rogers opted to forego the annual bump in lieu of prioritizing debt repayments and investing in growth initiatives.
Thus far in 2020, Rogers is still trading down over 10%. This makes it an ideal time to buy the stock whether for long-term growth or income-earning potential. In short, reopen your portfolio and buy Rogers now.
