After peaking in 2022, Canadian telecom shares have hit a tough patch. The nation’s Massive Three gamers — BCE (TSX:BCE), Rogers Communications (TSX:RCI.B), and TELUS (TSX:T) — have delivered disappointing returns, badly underperforming the broader Canadian market. In distinction, a smaller however more and more dominant rival, Quebecor (TSX:QBR.B), has surged forward.

So, which telecom inventory is one of the best to purchase proper now? The reply is changing into more and more clear.

Massive telecoms underneath stress

Over the previous couple of years, main Canadian telecoms have been squeezed by a mixture of tighter authorities laws, rising competitors from Quebecor, elevated rates of interest, and a saturated market providing restricted progress. Because of this, investor sentiment has turned bitter — and the numbers present it.

From 2022 to mid-2024, whereas the Financial institution of Canada (BoC) raised the coverage rate of interest to a punishing 5.0%, the Massive Three telecoms delivered a median return of -16.7%. Throughout the identical time, Quebecor returned 17.4%, and the broader market (as measured by the iShares S&P/TSX 60 Index ETF) returned 12.9%.

Even after the BoC started reducing charges in June 2024 — bringing it all the way down to 2.5% as of this month — the Massive Three continued to wrestle. Their common return for the reason that begin of the rate-cutting cycle is now an eye-watering -21.9%, with BCE dragging the typical down after slashing its dividend by over 50% in Might 2025. Excluding BCE, Rogers and TELUS nonetheless posted a median return of -14.2%, in comparison with Quebecor’s unimaginable 82% and the broader market’s 55%.

Evaluating the basics

Right here’s a fast snapshot of the 4 telecom gamers primarily based on their second-quarter (Q2) 2025 debt ranges and earnings power:

Regardless of having greater leverage, Quebecor’s curiosity protection ratio — a key measure of debt sustainability — is the healthiest within the group. This offers it the flexibleness to spend money on progress and climate financial downturns extra successfully.

Quebecor additionally advantages from being smaller and nimbler. With trailing 12-month (TTM) income of $5.6 billion, it’s a couple of quarter the scale of BCE, nevertheless it has grown income 23% since 2021. By comparability, BCE’s income grew simply 4.1% over the identical interval.

So, which inventory is one of the best purchase now?

Every of the Massive Three has its enchantment. TELUS affords a hefty 7.6% dividend, engaging for income-seeking traders. Rogers trades at a 13% low cost and will symbolize a turnaround alternative. BCE is now buying and selling at a ten% low cost and yields 5.5%, however its dividend reduce has shaken investor belief.

Nevertheless, if you happen to’re searching for higher progress prospects, Quebecor might be one of the best Canadian telecom inventory to purchase. Its outperformance in a difficult setting, stable monetary metrics, and continued growth into the wi-fi market make it a comparatively engaging possibility.

Whereas the Massive Three might ultimately recuperate, Quebecor is already proving it will probably ship — and traders have taken discover.

The one factor which may maintain traders again from Quebecor is that the inventory is pretty valued right this moment, with little margin of security. Maybe ready for weak point in a market correction is a safer method to go.