3 Bargain Stocks – Roger Communications

 

2-Roger Communications

For portfolio diversification, investors need to consider Canadian telecom giant Rogers. It stands out as a high-tiered stock with a forward Price/Earnings ratio of 16. Also, when the company announced that it would buy Shaw Communications for $ 26 billion, reasons arise to think that its future earnings could look even better.

If this deal is completed (the Canadian government has the potential to intervene, as this acquisition will affect competition), Rogers will become the second largest telecom company in Canada.

Compared to Rogers' dominance in the east, Shaw has a strong presence to complement Canada's west coast. Both companies provide internet and mobile services to millions of Canadians. Shaw also entered the wireless business by launching the Freedom Mobile brand in 2017. (It has a total of 1.9 million subscribers as of November 30, 2020.) Rogers has significant market share and experience, reporting around 11 million postpaid and prepaid subscribers as of the end of last year. (This factor could help Shaw's business grow.) At worst, if the deal fails, investors will continue to receive Rogers' steady and upward rising 3.3 percent dividend. (The company has posted a solid 10 percent profit margin in each of the past four years.) At best, you can have a secure stake in the company that has new power to grow its business, which could make it a hot buy.   3 Bargain Stocks – Roger Communications Source: https://www.fool.com/ You may also be interested in:

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