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Canada’s telecom market nonetheless runs like a decent three-player membership, with BCE, Rogers (TSX:RCI.B), and TELUS (TSX:T) controlling a lot of the motion. That may make the sector interesting, as a result of scale, sticky clients, and recurring payments don’t exit of favor. But when I’m skipping BCE after its current volatility and specializing in simply TELUS inventory and Rogers, I’d lean towards Rogers right now. TELUS inventory has the larger yield, however Rogers appears stronger on valuation, balance-sheet progress, and near-term execution.

T

TELUS remains to be a simple enterprise to love on paper. It has wi-fi, web, and TV operations throughout Canada, plus healthcare and digital-services companies that give it extra progress angles than a plain telecom. During the last 12 months, administration additionally pushed more durable into synthetic intelligence (AI) and software program by shifting to purchase the remaining stake in Telus Digital for about $539 million. That gave buyers one other reminder that Telus needs to be seen as greater than a telephone and cable firm.

The difficulty is that TELUS inventory nonetheless asks buyers for persistence. In December 2025, TELUS inventory paused its dividend progress program till the share worth higher displays its progress prospects, and it additionally moved to step down its discounted DRIP. That was a sensible alternative, but it surely additionally signalled that administration is aware of the market has issues round leverage, capital allocation, and the way lengthy it could take for newer companies to maneuver the needle.

The most recent numbers had been first rate, however not sufficient to make TELUS inventory my prime decide right now. In fourth-quarter 2025 outcomes, it reported about $5.3 billion in income and set a 2026 free money circulation goal of roughly $2.45 billion, up about 10%, with income and adjusted earnings earlier than curiosity, taxes, depreciation and amortization (EBITDA) each anticipated to rise 2% to 4%. The inventory trades round 25 occasions earnings and yields roughly 9.3%, which is eye-catching. However that wealthy yield additionally tells you the market nonetheless sees threat. TELUS inventory can work for earnings buyers, but the turnaround feels prefer it nonetheless wants time.

RCI

Rogers inventory appears a bit much less thrilling at first look, however that’s precisely why I’d purchase it. It runs an easier funding story proper now: wi-fi, broadband, cable, enterprise companies, and a rising sports activities and media platform. During the last 12 months, it saved pushing via Shaw integration, improved working effectivity, and strengthened its sports activities footprint. Its transfer to purchase Bell’s stake in MLSE was a daring one, but it surely additionally deepened management over premium stay sports activities content material in a market the place bundled content material nonetheless issues.

Current information additionally confirmed Rogers tightening up the enterprise. Fourth-quarter 2025 outcomes bought a raise from media and sports activities, with income helped by Blue Jays playoff momentum and new channel launches. Extra importantly, Rogers saved bringing debt down quicker than anticipated. After the Shaw deal, that was one of many greatest enhancements buyers needed to see, and administration delivered.

The valuation is the place Rogers inventory actually begins to face out. In fourth-quarter 2025, it reported complete income of $6.2 billion, up 18%, with adjusted EBITDA of $2.7 billion, up 6%. Full-year free money circulation reached $3.4 billion, forward of steerage, and debt leverage improved to three.9 occasions from 4.5 occasions a 12 months earlier. For 2026, Rogers expects service income progress of three% to five%, EBITDA progress of 1% to three%, and free money circulation of $3.3 billion to $3.5 billion. In the meantime, the inventory trades at solely about 4 occasions trailing earnings and yields roughly 3.7% at writing.

Backside line

If I needed to decide one Canadian telecom inventory to purchase right now, I’d go along with Rogers inventory. TELUS inventory nonetheless has enchantment, particularly for yield hunters, however Rogers inventory appears just like the cleaner wager proper now. Plus, each supply dividends.

It has bettering money circulation, falling leverage, a less expensive valuation, and a enterprise combine that appears extra resilient on this stage of the cycle. In a sector that already strikes slowly, I’d quite personal the telecom giving buyers fewer causes to fret.