The synthetic intelligence (AI) growth wants greater than energy and chips. It additionally wants networks which can be quick, dependable, and safe. That’s the place Rogers Communications (TSX:RCI.B) begins to look extra attention-grabbing than many buyers might imagine.
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RCI
Granted, Rogers inventory isn’t a pure knowledge centre inventory. It doesn’t personal the form of high-growth data-centre portfolio that may make it commerce like a digital infrastructure firm. Actually, Rogers offered its 9 Canadian knowledge centres to InfraRed Capital Companions, which launched Qu Information Centres to function the platform.
However Rogers didn’t stroll away from the theme. It continues to supply community connectivity to these websites and promote data-centre companies on behalf of the brand new proprietor. That provides the corporate a sensible function within the knowledge centre period: fibre, enterprise connectivity, cloud entry, wi-fi, web, and enterprise networks.
That function may grow to be extra invaluable as AI infrastructure spreads throughout Canada. Information centres want electrical energy, land, cooling, and servers. However additionally they want to attach with prospects, cloud methods, company networks, and different amenities. A knowledge centre with out robust connectivity is only a very costly constructing filled with machines.
Numbers don’t lie
Rogers already owns one in every of Canada’s largest telecom networks. It serves wi-fi, cable, web, enterprise, media, and sports activities prospects throughout the nation. Its enterprise division works with corporations that want safe connectivity, cloud entry, non-public networks, IoT, and managed companies. These wants ought to solely develop as extra Canadian corporations use AI instruments, transfer workloads into the cloud, and demand sooner knowledge motion.
The dividend provides one more reason to take a look at the inventory now. Rogers pays $0.50 per share quarterly, or $2 yearly. At current costs, that places the yield round 3.9%. For a Canadian telecom with nationwide scale, that’s a helpful revenue stream even with a $7,000 funding.
| COMPANY | RECENT PRICE | NUMBER OF SHARES | ANNUAL DIVIDEND | ANNUAL TOTAL PAYOUT | FREQUENCY | TOTAL INVESTMENT |
|---|---|---|---|---|---|---|
| RCI.B | $51.87 | 134 | $2.00 | $268.00 | Quarterly | $6,950.58 |
The payout additionally has help from money move. Within the first quarter of 2026, Rogers generated free money move of $776 million, up 32% from final yr. Complete service income rose 10% to $4.9 billion, whereas adjusted earnings earlier than curiosity, taxes, depreciation and amortization (EBITDA) climbed 5% to $2.4 billion. The corporate additionally invested $808 million in capital expenditures, principally in its networks.
Wanting forward
These numbers present why Rogers inventory can attraction to dividend buyers. It owns important infrastructure, generates massive money move, and nonetheless has methods to enhance the stability sheet after the Shaw acquisition. Administration additionally raised its 2026 free money move outlook after slicing capital-spending expectations, which may assist with debt discount and dividend stability.
Rogers inventory doesn’t look costly in contrast with many defensive revenue names. Telecom shares have confronted stress because of intense wi-fi competitors, pricing stress, heavy debt, regulatory constraints, and investor frustration with sluggish dividend progress. These issues are actual. However additionally they clarify why Rogers inventory might provide higher worth at this time than it did when telecom shares have been extra fashionable.
The info centre upside isn’t about Rogers all of a sudden turning into an AI landlord. Traders must be clear on that. The upside comes from extra knowledge transferring throughout networks, extra companies needing safe connectivity, and extra cloud and data-centre visitors counting on telecom infrastructure. That’s a slower, steadier alternative. It suits Rogers higher than a flashy AI label ever would.
Backside line
Rogers inventory has the form of property that grow to be extra essential because the digital financial system expands. Shoppers want cell and web service. Companies want connectivity. Information centres want community hyperlinks. AI wants knowledge to maneuver quick and securely.
For buyers in search of revenue with a sensible knowledge centre angle, Rogers inventory appears to be like price contemplating. The dividend pays buyers whereas they wait, and the community upside provides the inventory a well timed purpose to be again on the radar.
