Rogers Communications was dealt a blow on April 1, 2025, as Scotiabank revised its rating on the stock from Sector Outperform to Sector Perform, accompanied by a price target cut from C$58 to C$50. The shift reflects growing concerns over Rogers’ ability to sustain growth momentum and navigate competitive and financial headwinds in Canada’s telecom sector.
The downgrade followed disappointing market performance, with the stock sliding 5.9% to $36.17 on the same day. Scotiabank’s move signals caution around Rogers’ revenue growth outlook and potentially muted synergy realization from its merger with Shaw Communications. While operational execution remains steady, analysts see limited upside in the near term.
➤ The downgrade suggests heightened concerns about margin pressures and integration-related challenges post-merger.
➤ The sharp stock drop indicates that investors may also be questioning the near-term trajectory of earnings and market share.
Despite this bearish shift in sentiment, Rogers’ dividend remains a strong pillar for long-term holders.
✔️ The company maintains a quarterly dividend of C$0.50 per share, demonstrating consistency even during turbulent times.
✔️ As of March 2025, the dividend yield hovers around 5.20%, offering attractive income for yield-seeking investors.
✔️ The current payout ratio stands near 40%, suggesting the dividend remains well-supported by earnings.
While $RCI may be under short-term pressure, its stable dividend and dominant position in Canadian telecom offer a cushion for patient investors. That said, expectations may need to be tempered as the company works through integration challenges and shifting market dynamics.