Q: good day to the best team
what is your opinion about this cie in the near term and the utility sector in general due to the declining interest rate trend thanks for your super service
what is your opinion about this cie in the near term and the utility sector in general due to the declining interest rate trend thanks for your super service
5i Research Answer:
Telus has seen decent momentum in the recent months as the Bank of Canada has begun cutting rates, further helping to support highly-indebted telco names. It has a strong yield of 6.8%, and with bond yields declining, investors will likely seek out high-dividend paying stocks in light of this. We think it can see positive momentum from here, but there may be some chop along the way.
The utilities sector should also benefit from declining rates, and we think this is an attractive area in the medium to long-term.