Wednesday, April 15, 2015

Recent Buy - Rogers Communications

     In a beautiful twist of fate, as Mr. Market marked the share price of Rogers Communications ("Rogers") down almost 2% today for no reason at all, I was able to buy one of my favorite dividend growers of all time! Better yet, by purchasing these shares in my tax-free savings account ("TFSA), I was able to get closer to completing my portfolio transformation.  I'll just have to wait more than a month to sell the same number of shares in Rogers that I bought today in my RRSP, and then I'll hold all my Rogers stock in my TFSA.
     Rogers has been a long-time holding of mine (over 5-years), and I've slowly added to my position over time.  Although their customer service is notoriously bad, something the relatively new CEO has indicated is a priority to improve, I can assure you there are many positives about the company. These positives include:

- They're the industry leader in wireless in Canada with over 9.5 million subscribers. They're also the second biggest cable company in Canada servicing cable, internet, and fixed line phone subscribers.
- Despite our TSX hitting all-time highs, Rogers is still priced at a very reasonable P/E of ~16X.
- Their balance sheet and financial performance is strong as reflected in their BBB+/Stable and Baa1/Stable issuer ratings from S&P and Moody's respectively.
- The dividend yield of 4.5% is impressive, as is the 1-year dividend growth rate of 5% and the 5-year average dividend growth rate of 10%.

     As you may have guessed, I'm extremely happy to keep progressing toward my goal of finishing my portfolio transformation. Holding all my shares of the same company in the same account, and focusing on tax-efficient placement of my holdings are one of my big three goals for the year.


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