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 Reports and Commentary from the Investment World

Reports and commentaries are posted here on a regular basis.


Rogers Communications


Rogers Communications (RCI:TSX RCI:NYSE)

Following our mantra for 2009 of quality, quality, quality, this Canadian stalwart looks good value and pays a nice dividend too!

Rogers Communications Inc. is a diversified Canadian communications and media company engaged in three primary lines of business:

Rogers Wireless is Canada’s largest wireless voice and data communications services provider and the country’s only national carrier operating on the world standard GSM and HSPA technology platforms.

Rogers Cable is Canada’s largest cable services provider, offering cable television, high-speed Internet access, and telephony offerings for residential and business customers, and operating a retail distribution chain which offers Rogers branded wireless and home entertainment products and services.

Rogers Media is Canada’s premier group of category-leading  broadcast, specialty, print and on-line media assets with businesses in radio and television broadcasting, televised shopping, magazine and trade journal publications, and sports entertainment.

These are wholly-owned subsidiaries of Rogers Communications.

The company more than doubled its revenue in the last 4 years and more than doubled its dividend over the same period.

Rogers Communications has excellent positions in growing markets, a powerful brand, proven management, a long record of driving growth and shareholder value, and the financial strength to continue its growth well into the future.  The company has strong management and operating teams with excellent expertise and technical depth.

Financially strong with balance sheet leverage at two times debt to operating profit, investment grade credit ratings, $1.8 billion of available liquidity and no debt maturities until May 2011. This all shows healthy liquidity and is good news for the dividends. Each share pays an annualized dividend of $1.16 per share in 2009.  In February 2009, Rogers announced that it would further increase the dividend to $1.16 and that it was refreshing its share buyback program for 2009.

2008 was obviously a very challenging period in the global equity markets. Rogers shares were not immune to the downturn and the shares declined 19% on the Toronto Stock exchange. However,they outperformed the wireless and cable peer groups and the North American broad market indexes, which all declined by more significant amounts.

This is one company that should ride out the recession relatively well. The credit crunch will have little impact on Rogers. FY2008 Revenue was $11.3 billion. First Quarter 2009 Consolidated Revenue has grown by 5% to $2.7 Billion.  This is a good result during difficult times.

Rogers  common stock actively trades on the Toronto and New York stock exchanges, with average daily trading volume greater than three million shares.

Buy Rogers Communications (RCI:TSX RCI:NYSE) up to CAD $30


Disclaimer: All the information above is provided as a service for individuals and institutions. It should in no way be construed as a recommendation as an investment. Investment decisions should be based on the risk tolerance and planning horizon of the investor. Market participants must understand that past performance is also not a guarantee or predictor of future results.