Tuesday, March 31, 2009

Rogers purchase

Today I purchased shares in Rogers Communications inside my wife's RRSP account.

Here is a post I wrote on Rogers for The DIV-Net, where I described it as one of the companies that will make up the 'Future of Canadian Dividend Growth'.

I am extremely confident holding Rogers for the long term due to their market positioning in Canada, and potential for further growth as they cater to those who crave the latest technology and media experience. Their dividend growth has been stellar and I see no reason for this to stop. This is one company that I believe will outperform even in this tough economy. Cell phones and cable services are sacred to many Canadians and Rogers has the pricing power to inch rates up year over year.


Nurseb911 said...

Great buy MG! I'm a very happy RCI.B shareholder and think their recent announcement for the CEO is an excellent choice. You're still holding Telus right? I'd be interested in your reasoning for RCI.B & T vs. BCE & SJR.B

I own Rogers & Shaw.

Million Dollar Journey said...

Is Telus building a competing GSM like cell phone network in Canada? If so, how do you think this will affect Rogers' business model?

MG (moneygardener) said...

I think it is something Telus and Bell needed to do and was widely expected by the industry. Rogers being the first mover still has an advantage. The bottom line is that these companies will likely always share the market and make their inroads where they can. I like Rogers and then Telus in that order. Rogers coming from cable seems to have a better hold on customers.

I do like Telus because of their strong marketing, western focus, and good management.

Sampson said...

Hi MG,

Great pickup. I've been eyeing some telecoms/cable/utilities too.

I was also curious about the Rogers > Telus > BCE/Shaw. I know out West here, Shaw has really been eating up market share from Telus. The customer experience is 100 fold better, there starting to get a decent foothold on the bread & butter landline market - and there are opportunities for wireless (although I'm guess they'll just sell those frequencies they bought up).

I was at a talk by the former VP marketing for Telus, and he sure made it seem like Telus was very worried about the in roads Shaw has made.

Anyway, all those names actually look quite attractive these days.

Ray said...

Great buy rogers is one of my best performers from last year, recently added more to the position.

I am a strong believer in Rogers, currently paying about $400/month to rogers.

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