Why BCE, Rogers and Telus shares are so cheap

After the Bank of Canada cut interest rates by a jumbo size of 50 basis points, telecom stocks fell. BCE (BCE) decline is particularly worrying. The stock is trading ex-dividend today, but it has fallen over the past week.

BCE stock now offers a dividend yield of 10.90%. Markets expect not only a suspension. It is pricing in a dividend cut in 2025.

Rogers Communications ( RCI ) lost 4.7% last week. It has excellent value, profitability and analyst earnings per share. stock audits. It bought BCE’s Maple Leaf Sports & Entertainment (MLSE) for C$4.7 billion. Rogers said the big purchase would not hurt its debt leverage. It will get funding that includes private investors.

Telus (TU) fell the most last week, falling 7.93%. The stock has good value, profitability and EPS revisions. However, Telus has no media holdings. It depends mainly on the western Canadian markets for its telecommunications business.

Fall in the Canadian dollar

The three telcos likely lost foreign investors who sold the Canadian dollar to avoid further losses. The devaluation reduces the attractiveness of the dollar. While stimulating the housing market, the impending 25% US tariffs will hurt Canada’s economy. B of C would have to lower interest rates even more. This hurts the value of telecom stocks and the currency.