Canadian telecom shares slump this year while the S&P/TSX Composite is up about 11 per cent
The Globe and Mail reported on 18 October that Canada's telecom stocks are in a slump while the S&P/TSX Composite is up about 11 per cent this year. The five-company telecom index is down more than 16 per cent, with BCE down about 11 per cent, Rogers about 13 per cent and Telus about 33 per cent since January. The Globe cited rising bond yields and said Bell, Rogers and Telus together carry nearly $100-billion of long-term debt. BBN Times reported Telus shares fell more than 11 per cent in late July after a second-quarter loss and a 55 per cent cut to the annualized dividend. Bloomberg reported in April that TD Cowen cut BCE, Telus and Rogers to hold. The Globe also reported that telecom shares fell after SpaceX bought a U.S. spectrum portfolio.
Telecoms are widely held for their dividends, so a falling share price raises yields and signals investors doubt the payouts. Heavy debt and rising yields increase borrowing costs at the same time that competition is intensifying.
If you own dividend funds or a pension with large Canadian telecom holdings, the slump affects your returns directly. Mobile customers may see more promotions if price competition continues.
Bearish analysts quoted by the Globe and Bloomberg argue that price wars, slower subscriber growth and satellite competition threaten margins and dividends.
The Globe noted that the SpaceX deal does not directly affect Canada, which supports the view that part of the fall reflects fear rather than lost revenue. Some investors may see lower prices as an opportunity if dividends hold.
Confirmed: the sector index is down more than 16 per cent this year against a rising TSX. Not confirmed: whether more dividend cuts follow Telus. Watch for third-quarter earnings dates for BCE, Rogers and Telus and any change to their payouts.
DailyDrop Canada edition No. 15 · Morning · MON., OCT. 19, 2026