Investment Thesis
Shaw Communications (SJR) (SJRWF) (TSX:SJR.B) delivered mixed Q3 2019 with modest revenue growth but a slight decline in its operating income. We continue to hold the view that Shaw's operating margin will improve in the next few years, thanks to its significant growth in its wireless business and an increase in wireline Internet subscribers. Shaw currently pays a 4.4%-yielding dividend. Based on our calculation, its share value could appreciate by 15.3%. Therefore, we believe this is a good stock for investors seeking capital appreciation and dividend income.
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