5G rollout good news for income investors

Article Excerpt

The installation of new 5G wireless networks—up to 100 faster than current systems—is starting to contribute to the earnings of leading telecoms. The influx of new subscribers should also let them continue to raise your dividends. TELUS CORP. $32 is a buy. The company (Toronto symbol T; Income-Growth Dividend Payer Portfolio, Utilities sector; Shares outstanding: 1.4 billion; Market cap: $44.8 billion; Dividend yield: 4.1%; Dividend Sustainability Rating: Highest; www.telus.com) is Canada’s second-largest wireless carrier, with 11.42 million users. That places it just behind BCE’s Bell Mobility, Telus also sells landline phone, Internet, TV and home security services in B.C., Alberta and eastern Quebec. With the January 2022 payment, Telus raised your quarterly dividend by 3.5%, to $0.3274 a share from $0.3162. The annual rate of $1.31 yields a high 4.1%. In the quarter ended December 31, 2021, revenue rose 20.0%, to $4.87 billion from $4.06 billion a year earlier. Net of cancellations, the company added 193,000 new wireless subscribers (including subscriptions involving cellphones and other mobile devices)…