TSX Today – Why You Should Buy Cogeco Communications Today
Cogeco Communications (TSX:CCA) operates as a top communications company in Canada and North America broadly. Its shares have climbed 21% in 2021 as of close on May 26. The stock is up 19% from the prior year.
The company released its first quarter 2021 results on April 13. It posted revenue growth of 8.2% in the quarter. Meanwhile, adjusted EBITDA increased 10% to $307 million. Free cash flow jumped 14% to $142 million. The COVID-19 pandemic has bolstered demand for residential high-speed Internet across the country. Millions of Canadians are now working from home. This makes quality Internet a must going forward.
Cogeco made promising strides in its home province in the first quarter. It completed the acquisition of DERYtelecom, the third largest cable provider in Quebec. Meanwhile, it also announced the acceleration of high-speed Internet network expansion in Quebec which will be in collaboration with provincial and federal governments.
In Q2 2021, Cogeco announced a quarterly dividend of $0.64 per share. That represents a 2.1% yield. It has delivered dividend-growth for over 15 consecutive years.
Shares of Cogeco Communications possess a favourable price-to-earnings ratio of 15. The stock threatened to dip into technically oversold territory in trading late last week. It last had an RSI of 52, putting it in neutral territory. I’m still bullish on this telecom going forward.
Canadian investors should look to snatch it up at a discount.