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Telus (TSX:T) and BCE Inc (TSX:BCE) are two of Canada’s favorite dividend shares. They share many similarities. Certainly, they’re mainly the identical sort of enterprise: suppliers of mobile, web, and TV service to Canadians. Regardless of this apparent similarity, there are variations between the 2 firms as effectively. Notably, they’ve pursued very totally different methods for diversifying their operations. Whereas BCE has branched out from telecommunications by stepping into media proprietorship, Telus has opted to diversify into buyer expertise consulting. On this regard, Telus and BCE are worlds aside. On this article, I’ll discover Telus and BCE inventory facet by facet, so you possibly can resolve which inventory is greatest to your portfolio.

The case for Telus

A case will be made for choosing Telus inventory over BCE inventory on the premise of development. Within the trailing 12-month interval, Telus grew its income at 11.5%, whereas BCE grew at a mere 2.9%. The identical development holds over the past five-year interval, a time interval during which Telus’ income has grown at a 7.5% CAGR, whereas BCE’s income has solely grown at a 1.13% CAGR. Then again, BCE has considerably higher development in earnings and free money stream, so this class isn’t precisely a slam-dunk victory for Telus.

The case for BCE Inc

A case for selecting BCE over Telus will be constructed on the previous inventory’s higher valuation, dividend security, and profitability.

BCE inventory is usually cheaper than Telus inventory. This level will be confirmed by trying on the chart under:

Technically, this class is a draw, with Telus and BCE every scoring a number of factors. Nonetheless, the P/E ratio is way extra necessary than the worth/gross sales ratio, so total I’d name BCE inventory cheaper than T inventory.

It’s an analogous story with profitability. BCE is way extra worthwhile than Telus, with a 9.5% internet margin to T’s 4.5% internet margin. Likewise, BCE has the upper return on fairness, 12.4% in comparison with Telus’ paltry 4.4%.

Lastly, now we have the dividend metrics. Right here, BCE Inc has some spectacular numbers, together with a 7.16% yield, a three-year dividend development streak, and 11.5% CAGR dividend development over the past 5 years. Telus scores worse, with a 6.15% yield, a two-year development streak, and 6.5% CAGR dividend development over the past 5 years. Lastly, BCE’s payout ratio, 120%, is decrease than Telus’ 150% – with this metric, decrease is best. So BCE has received Telus crushed on dividend security and yield!

Silly takeaway

all the monetary components I’ve examined on this article, BCE Inc would seem like a greater dividend inventory than Telus. It outscores Telus on each single metric I might discover, and on high of that, it arguably has the sting over Telus in some unquantifiable “comfortable” components, equivalent to model recognition. Just about all people in Canada is aware of Bell, not all people essentially is aware of about Telus. So, BCE has extra components going for it than Telus does, certainly.