Why I’m Buying Rogers Stock Today - InvestingChannel

Why I’m Buying Rogers Stock Today

Rogers Communications (TSX:RCI.B)(NYSE:RCI) is one of the top telecom companies in Canada. It recently passed through a leadership crisis that saw a power struggle erupt among the Rogers family. Edward Rogers ultimately came out victorious. He went on to dismiss CEO Joe Natale. Natale will be replaced by former CFO Tony Staffieri.

The internal spat at Rogers sparked volatility for the top telecom. Fortunately, the solidification of Edward Rogers’ standing should boost investor confidence in the near term. I’m looking to snatch up Rogers on the dip in late November.

Shares of Rogers have dropped 1.4% in 2021 as of early afternoon trading on November 22. The stock has plunged 2.8% over the past six months. It released its third quarter 2021 earnings on October 21.

Internal upheaval has not been the only obstacle Rogers has faced in recent months. It has also struggled to keep pace with top rivals like Telus. Meanwhile, its large media division has taken a hit due to the COVID-19 pandemic. It struck a major television deal with the National Hockey League (NHL) back in 2013. That deal has turned somewhat sour as the NHL faces billions in losses due to the pandemic.

Regardless, Rogers is still worth snatching up today. Its Media segment returned to positive adjusted EBITDA of $33 million in the third quarter. Meanwhile, it delivered wireless postpaid net subscriber additions of 175,000. Shares of Rogers possesses a favourable price-to-earnings ratio of 18. It offers a quarterly dividend of $0.50 per share. That represents a 3.3% yield.