1 Undervalued Dividend Stock to Buy Today - InvestingChannel

1 Undervalued Dividend Stock to Buy Today

Rogers Communication (TSX:RCI.B)(NYSE:RCI) is one of the largest telecommunications companies in Canada. The Toronto-based telecom has seen its stock drop 1.7% in 2021 as of mid-afternoon trading on September 27. Shares of this dividend stock have still climbed 12% year over year.

The company released its second quarter 2021 results on July 21. Rogers delivered cable revenue growth of 5% as adjusted EBITDA increased 8% compared to the previous year. This growth was powered by Wireless postpaid net subscriber additions of 99,000. Meanwhile, Rogers achieved Media revenue growth of 84%. This was primarily due to a rebound in television advertising revenue as live professional sports broadcasting returned in full force. It should continue to receive a boost as the National Football League (NFL) has returned for its typically strong fall and winter performance.

Total revenue in the first six months of 2021 rose 8% to $7.07 billion. Moreover, adjusted net income delivered 15% growth to $781 million. Adjusted diluted earnings per share climbed 18% to $1.54.

What qualifies Rogers as an undervalued dividend stock? Its shares possess a favourable price-to-earnings ratio of 18. The stock last had an RSI of 30. That puts Rogers just outside of technically oversold territory. Rogers currently offers a quarterly dividend of $0.50 per share. This represents a 3.3% yield.