Why are Canadian Telecom Company Share Prices dropping steadily

Views: 578 Date: 2025-05-23 Canadian telecom companies like BCE, TELUS, and Rogers have seen their share prices decline steadily since 2022 due to a combination of macroeconomic, regulatory, competitive, and structural factors. Here’s a breakdown of the main reasons: 1. Rising Interest Rates Interest rate hikes by the Bank of Canada have been the most significant headwind. Telecom stocks are bond-like in nature (due to high dividends), so as bond yields rise, their relative appeal declines. Higher rates also increase the cost of capital for these debt-heavy businesses, pressuring earnings and cash flow. 2. High Debt Levels All major Canadian …

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