Despite facing significant customer service challenges, Rogers Communications Inc. (TSX:RCI.B)(NYSE:RCI) remains a promising dividend stock for investors, offering a robust yield of 3.2%. The Canadian telecom giant is a leading telecom company in the country, and it’s also a leader in complaints.
According to a study from the Commission for Complaints for Telecom-television Services, Rogers has overtaken Bell (TSX:BCE)(NYSE:BCE) as the most complained about telecom provider in Canada. Covering the period from August 1, 2022, to July 31, 2023, Rogers accounted for 19.8% of the total complaints, marking a significant 43.6% increase from the previous year. This rise in customer dissatisfaction outpaces the overall industry increase in complaints, which stood at 14%.
Rogers' spokesperson, Cam Gordon, however, emphasized the company's commitment to customer experience and continuous improvement. The company recently acquired Shaw and has expanded its customer base; ensuring customer service doesn’t continue deteriorating could be key in avoiding a significant amount of churn.
But with limited competition in the Canadian telecom industry, a rise in complaints may not necessarily can the investment thesis for Rogers as a top dividend stock. It’s still likely to be a leading company within the industry, especially given its recent acquisition of Shaw.
In the trailing 12 months, Rogers has generated earnings of just over $1 billion, on revenue of $18.1 billion. And Rogers’ investors don’t appear overly concerned with its reputation, either – over the past 6 months, shares of Rogers are up over 7%. The stock trades at 14 times its estimated future earnings and can still potentially be a good investment to buy for the long term.
