1 Dividend Great I’d Buy Over Telus or BCE Stock Today

If you like value and yield, the Canadian telecom stocks really do look like great potential buys right here, provided you’re comfortable playing the long-term game as you give these two names more time to get back on track. Undoubtedly, the huge dividend yields of Telus (TSX:T) and BCE (TSX:BCE) stand out as the main draw. However, it’s the potential for deep value and rebound returns that should have investors most enticed about the names.

As always, though, it’s hard to draw that line in the sand, especially as the telecom scene looks to face a bit more pressure through the year. With low expectations and cost-cutting plans freeing up capital to be invested elsewhere, though, perhaps there is a route higher, even if the industry isn’t bound for a collecting surge.

Telus and BCE still face hurdles ahead. Maybe it’s best to wait and see?

In this piece, we’ll check in on a dividend great that might make for a better February buy over the likes of Telus or even BCE. Of course, you’re not going to get that same 8.7% yield as you would with the likes of a Telus. And with quarterly earnings results up ahead, perhaps investors should prepare for heightened volatility as shares of T consider their next move after a nice 12% bounce off multi-year lows.

Could Telus disappoint again and cause the ricochet bounce gains to be wiped out in a day or two? Time will tell. I think the bar is fairly low for Telus, but for interested buyers, I’d look to have a time horizon of at least three years, given the potential for the rocky ride in a market environment that might begin to stall.

TD Bank has the momentum on its side

TD Bank (TSX:TD) stands out as a dividend growth star that might be better for investors who want the trifecta of dividend growth, a respectable yield (3.24% is still decent, though compressed), and a good amount of share price momentum. Perhaps there is a fourth trait that makes TD Bank stock stand head and shoulders above its peers in the Canadian banking basket: the depressed valuations.

The stock goes for 11.5 times trailing price-to-earnings (P/E), which is a low price to pay for a bank that’s starting to gain serious fundamental momentum. Shares are up more than 55% in the past year, and with a solid “more human” Super Bowl ad involving a delivery robot, it’s clear that TD Bank has the ambition to stay ahead as we enter the AI age without losing the human touch.

In any case, TD Bank is tech-savvy, and as the bank continues doubling down on AI to enhance its digital moat, it’ll be hard to bet against the $225 billion financial behemoth, especially as momentum looks to last through another year. With a new proven leader (CEO Raymond Chun) and the wind at its back, it’s hard to bet against such a winner as it looks to make even higher highs.

As others buy low and sell high, perhaps it’s time to buy TD and hold on for the next 10 years. It’s a dividend great that rewarded patient shareholders who held through 2023 and 2024. And there might be more to the incredible comeback story.

The post 1 Dividend Great I’d Buy Over Telus or BCE Stock Today appeared first on The Motley Fool Canada.

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More reading

• Has BCE Stock Finally Hit Rock Bottom?
• 1 Unstoppable Canadian Bank Stock to Buy Right Here, Right Now
• Outlook for TD Stock in 2026
• What’s the Average TFSA Balance at Age 30 in Canada?
• Top Canadian Stocks to Buy With $10,000 in 2026

Fool contributor Joey Frenette has positions in Toronto-Dominion Bank. The Motley Fool recommends TELUS. The Motley Fool has a disclosure policy.