Q: Do you see a good potential for an upside on Rogers comm. I see the yield is attractive while waiting. do you see the risk to fall much further?
Thank you.
Thank you.
5i Research Answer:
It is a relatively slow-growth industry with high capital expenditures. The sector has certainly struggled for some time. Earnings growth is expected over the next two years, however. RCI has focused on debt reduction over dividend growth, and has not raised its dividend since 2019. But, debt has increased sharply since then anyway (with Shaw and other acquisitions). The stock is certainly cheap at 7X earnings. At current levels we would be comfortable with it for income. But we would not really say it has 'good potential for upside' in the short to medium term.