Overview
Canadian telecom names present a spectrum of investment cases across returns, margins and dividend income. Using Investing Pro metrics as applied by WarrenAI, five firms emerge as the top picks to follow heading into 2026: Quebecor, Rogers Communications, Cogeco, BCE and TELUS. The ranking draws on measures including fair value comparisons, total returns, EBITDA margins, forward price-to-earnings ratios, dividend yields and analyst price targets to generate an ordered view of the sector.
Summary of methodology
The selections weigh recent share performance and core operating profitability alongside valuation indicators and expected upside from analyst targets. Where available, quarterly results cited below are included to show recent revenue and adjusted EBITDA trends that underpin the rankings.
1. Quebecor (TSX:QBR.A) - The breakout growth leader
Quebecor tops the list after delivering a one-year total return of 59.7% and sustaining a sector-leading 35.4% EBITDA margin. The company posts the highest return on equity in the group at 38.5%, a signal of robust internal returns on capital. Quebecor trades at a forward P/E of 13.1x and offers a 2.8% dividend yield. Its fair value is cited at C$45.59, which suggests the market price may be marginally above intrinsic value; nonetheless, technical indicators are described as bullish over longer timeframes.
Analysts included in the assessment forecast EPS growth of 17.5% in 2025 for Quebecor, supporting the growth narrative. The firm reported first-quarter 2024 figures showing revenues climbing 22.4% to C$1.36 billion and adjusted EBITDA rising 25.1% to C$614.5 million, strengthening its operating case.
2. Rogers Communications (NYSE:RCI) - The value recovery play
Rogers ranks second after a 32% one-year return and the highest EBITDA margin across the sample at 44.7%. The company shows a fair value of $38.24, a forward P/E of 10.2x and a 3.9% dividend yield. Analysts project a 57% upside from current levels, the largest potential among Canada’s three largest telecom operators noted in the ranking. Recent analyst upgrades and an improving cable-to-wireless revenue mix are cited as positive signals, although short-term technical indicators show some bearishness, which may create entry opportunities for value-oriented investors.
On the results front, Rogers reported first-quarter 2024 total revenue of C$5.05 billion, up 28%, and adjusted EBITDA of C$2.23 billion, up 30%. The company reaffirmed its financial guidance for the year.
3. Cogeco Inc (TSX:CGO) - The small-cap contrarian
Cogeco is positioned third after producing a 34.9% one-year return and offering the sector’s highest dividend yield at 5.8%. The company reports the lowest forward P/E among peers at 7.3x and records a 47.8% EBITDA margin. While Cogeco faced a modest revenue decline, its transformation plan paired with strong margins supports a fair value estimate of C$82.45.
Analysts model a 48.5% upside, making Cogeco attractive to investors focused on both return and income potential. However, short-term technical indicators recommend caution. In its second quarter of 2024, Cogeco reported revenue down 1.1% to C$746.1 million and a 0.3% decline in adjusted EBITDA, while maintaining its fiscal 2024 financial guidelines.
4. BCE Inc (NYSE:BCE) - The defensive income giant
BCE ranks fourth, notable for a 55-year dividend payout streak and a current yield of 5.0%. Its one-year total return of 14.6% lags the sector leaders and it trades at a 12.8x forward P/E. Despite negative revenue growth and a high leverage metric reported at a 299.2% debt-to-equity ratio, BCE was recently upgraded by major banks and continues to appeal to defensive income investors. Technical indicators are neutral to bullish across longer periods, and analysts attach a 52% upside to the stock.
BCE published first-quarter 2024 results showing total operating revenue down 0.7% to C$6.01 billion and adjusted EBITDA decreasing 2.0%. The company reaffirmed its annual guidance for 2024.
5. TELUS (NYSE:TU) - The high-yield caution flag
TELUS completes the top five with the highest indicated dividend yield among ranked peers at 8.7%, yet posts only a 2.1% one-year return. The company trades at a relatively rich 19.2x forward P/E and reports the lowest EBITDA margin among the ranked firms at 28.2%. Margin pressure is attributed to ongoing digital transformation initiatives. Analysts project a 25.4% upside, which is measured in comparison with larger projected gains for other Canadian telecoms in the list, suggesting a more cautious view despite the attractive cash yield.
TELUS reported first-quarter 2024 operating revenues up 0.6% to C$4.96 billion and adjusted EBITDA increasing by 4.7%. The company also updated its annual financial targets for 2024.
Implications for investors
The five highlighted companies reflect distinct investor propositions: Quebecor as a growth leader with strong returns on equity; Rogers as a potential recovery and value play; Cogeco as a high-yield small-cap with turnaround elements; BCE as a defensive income vehicle with high leverage and steady payouts; and TELUS as a high-yield name facing margin pressures. Each position carries trade-offs between current income, near-term operational trends and forward valuation multiples.