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A 6% yield within the present atmosphere is troublesome to search out. On the subject of telecom shares, Telus and BCE at all times steal the present. The fears of dividend cuts, excessive leverage, and the after-effects of the regulation change have affected their revenue margins and dividend-paying capability. However the different aspect of the regulatory change nobody is speaking about. Cogeco Communications (TSX:CCA) is a beneficiary of the rule change, and its 6% dividend yield deserves a better look.

Why this dividend inventory deserves a better look

The rule change allowed Cellular Digital Community Operators like Cogeco, which don’t personal fibre infrastructure, to lease community entry from Cellular Community Operators like BCE and Telus. In August 2025, Cogeco launched its Canadian wi-fi service, Cogeco Cellular, throughout 12 markets in Ontario and Quebec.

Cogeco Cellular requires no commitments from clients. Furthermore, it doesn’t cost activation charges or shock overage. It’s bundling wi-fi service with its present Cogeco residential web subscriptions for bundle reductions.

Because it has an asset-light mannequin, the debt burden is comparatively much less. Its web debt is 3.2 occasions its Adjusted Earnings Earlier than Curiosity, Taxes, Depreciation, and Amortization (EBITDA), nearer to Telus’s 3.5 occasions. Nonetheless, Cogeco’s excessive ratio is due to a 5.3% decline in Adjusted EBITDA on account of an accounting therapy.

Cogeco acknowledged $1.8 million and $3.5 million of know-how licensing prices for its wi-fi operations as working bills through the three- and six-month durations ended February 28, 2026, respectively. Earlier, when Cogeco was establishing the wi-fi enterprise, it reported this expense underneath ‘Acquisition, integration, restructuring, and different prices’, which didn’t have an effect on its EBITDA. The accounting therapy has modified the leverage ratio, however debt is at manageable ranges.

One spectacular dividend inventory yielding 6%

Cogeco is a lovely dividend inventory. It has been rising dividends at a median annual price of 10% for the final 11 years. In 2026, it grew its dividend by 7% to $3.95 per share. This dividend makes up for 30% of its free money stream per share. That could be a protected ratio, giving Cogeco ample area to develop its dividends even when income falls.

In contrast to BCE and Telus, Cogeco doesn’t provide a dividend reinvestment plan. Nonetheless, its excessive dividend yield and development price make it value contemplating in your passive earnings portfolio.

Learn how to spend money on Cogeco

Cogeco inventory fell 20% on March 26, triggered by information that institutional shareholder CDPQ is rebalancing its fairness stake. This dip has created a shopping for alternative for dividend seekers to lock in a 6% yield. Contemplate investing a lump sum quantity within the inventory earlier than it recovers.

A bit over $6,000 funding right this moment should buy you 91 shares of Cogeco, which might earn $359 in annual dividends. You should utilize these dividends to purchase different development shares and develop your portfolio.

Assuming Cogeco grows its dividend by 6% yearly, these 91 shares can provide you $453 in annual dividends by 2030. Contemplate investing by means of a Tax-Free Financial savings Account to keep away from dividend tax.