The Canadian economy has struggled since U.S. President Donald Trump returned to office, but the domestic stock market is having a strong year. The S&P/TSX Composite Index TXCX is up just over 20 per cent. And the INK Canadian Insider Index, which tracks the 50 stocks with attractive valuation and momentum characteristics preferred by insiders, has advanced 24.4 per cent so far in 2025, as of Thursday’s close.
Miners and oil and gas names are winning as countries strengthen industrial supply chains, energy security and defence spending. Meanwhile, the Bank of Canada and the Federal Reserve have been cutting interest rates, which is helping to support dividend stocks.
Today, we look at three dividend payers in the telecommunications area that have caught our attention as the INK Canadian Insider Index undergoes its quarterly rebalancing this Friday.
Cogeco Inc. CGO-T will leave the index when the rebalancing takes effect on Nov. 21. Rogers Communications Inc. RCI-B-T will join the index. Current index member Quebecor Inc. QBR-B-T will keep its place.
Cogeco provides internet, wireless and other communication services in Quebec, Ontario and the eastern United States. The stock was down 8.6 per cent in the six months leading up to Oct. 31, which was the valuation date for the rebalancing. There was no public market insider activity over that time. Negative price momentum and the reticence of insiders to increase their stakes in the company, even as shares were getting cheaper, were the two key factors at play in pushing Cogeco out of the index.
Cogeco reported its 2025 fourth-quarter (ended Aug. 31) results on Oct. 29. Revenue was $731.4-million, down 4.9 per cent from the fourth quarter in 2024. Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) was $357.1-million, down 3.8 per cent from the comparable period a year earlier. Earnings were $1.71 per diluted share, down 14.1 per cent from the fourth quarter of 2024.
For fiscal 2026, on a constant currency basis, Cogeco is projecting a revenue decrease of 1 to 3 per cent and an adjusted EBITDA decrease of 0 to 2 per cent. Despite the downbeat outlook, Cogeco also increased its quarterly dividend by 7 per cent to 98.7 cents per share.
The factors working against Cogeco’s index membership have been helping Rogers Communications. In the six months leading up to Oct. 31, Rogers Communications class B non-voting shares were up 52.7 per cent, and executive chair Edward Rogers spent more than $45.8-million buying stock in the public market.
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Rogers Communications reported third-quarter 2025 results on Oct. 23. Revenue was $5.35 billion, up 4 per cent from the same quarter in 2024. However, adjusted EBITDA fell 1 per cent to $2.52-billion. Adjusted earnings attributable to shareholders were $1.37 per diluted share, off 4 per cent from the comparable period a year earlier.
Despite the profit dip, investors seemed encouraged to hear that Rogers Communications also reaffirmed its full-year 2025 guidance for total service revenue growth of 3 to 5 per cent and adjusted EBITDA growth of 0 to 3 per cent. It also revised its guidance for capital expenditure downward to $3.7-billion ($3.8-billion previously) and free cash flow upward from $3.2-billion to $3.3-billion ($3-billion to $3.2 billion previously).
Rogers currently pays a quarterly dividend of 50 cents a share on each of its outstanding class B non-voting shares and class A voting shares.
With its 2023 purchase of Freedom Mobile, Quebecor arguably injected some meaningful competition into Canada’s wireless market. In July, 2024, Quebecor noted that the wireless component of the Consumer Price Index fell 26.6 per cent in the year following the acquisition. Prices dropped a further 10.8 per cent in the second year following Quebecor’s Freedom Mobile takeover.
In the six months leading up to Oct. 31, Quebecor stock advanced 18.3 per cent, while president and chief executive officer Pierre-Karl Péladeau bought $372,690 worth of shares in the public market on June 25.
The stock has continued to advance since the company reported third-quarter results on Nov. 6. As of Nov. 19, Quebecor class B shares are up 65 per cent on a 12-month basis. Third-quarter revenue was $1.41-billion, up 1.1 per cent from the same quarter in 2024. Adjusted EBITDA was $628.1-million, up 5.7 per cent from the comparable period a year earlier.
Mr. Péladeau noted that adjusted EBITDA was up across all of Quebecor’s business segments. Net earnings attributable to shareholders were $1.03 per basic share, up 27.2 per cent from third-quarter 2024.
Quebecor has also highlighted that it has reduced its consolidated net debt leverage ratio (consolidated net debt divided by the trailing 12-month adjusted EBITDA) to 3.03 times (from 3.31 times at the end of the third quarter of 2024), which it says is the lowest among Canada’s major telecommunications providers.
Under strong leadership, it seems competition can be good for businesses.
Quebecor currently pays a quarterly dividend of 35 cents per share on its class A and class B shares.
Ted Dixon is CEO of INK Research, which provides insider news and knowledge to investors.