Quebecor’s 4.2% Dividend & 16.4% Upside: Act Before May 23 Ex-Date

The Clock is Ticking: Secure Quebecor’s High-Yield Dividend Before the Ex-Date

Investors seeking a rare blend of income security and capital growth should act swiftly: Quebecor Inc. (QBR.A.TO) is offering a 4.2% trailing dividend yield, paired with analyst forecasts of 16.4% upside potential, all before its May 23 ex-dividend date. This is a textbook opportunity to lock in a CA$0.35/quarter dividend while positioning for a stock that analysts say could rise by nearly C$10 over the next 12 months.

Why Quebecor Now?

Quebecor, a diversified media and telecom giant, is delivering on two critical fronts: sustainable dividends and accelerating growth.

Dividend: A Conservative 4.2% Yield, Backed by Strong Cash Flow

Quebecor’s dividend is no flash in the pan. With a 40% payout ratio of earnings and a 36% payout ratio of free cash flow, this payout is conservatively funded, leaving ample room for reinvestment. The trailing yield of 4.2% exceeds its five-year average of 3.38%, making it an attractive entry point for income investors.

The next dividend of CA$0.35 per share, payable on June 17, is guaranteed only to shareholders who own the stock before May 23—the ex-dividend date. Missing this deadline means forfeiting the dividend, so timing is critical.

Growth: 11% EPS Expansion and Analysts’ Bullish Calls

While Quebecor’s dividend is compelling, its growth story is equally powerful. Analysts project 11% EPS growth in 2025, driven by its Freedom Mobile acquisition, strong telecom subscriber growth, and rising margins. The stock’s trailing P/E of 9.93 suggests it’s undervalued relative to its earnings momentum.

Here’s the kicker: The highest analyst target of C$43.99 (from CIBC) implies a 16.87% upside, aligning with the 16.4% figure cited in recent reports. Even the most conservative estimate (C$36) still offers modest growth, while the consensus average of C$40.64 represents a 7.94% gain. This spread highlights Quebecor’s reward-to-risk balance: upside potential outweighs downside risks for those willing to hold.

The Elephant in the Room: Debt, but Not a Dealbreaker

Critics will point to Quebecor’s C$7.94 billion debt, which pushes its debt-to-equity ratio to 348%. Yet, this leveraged balance sheet is offset by C$1.66 billion in operating cash flow—a robust cushion to service debt and fund dividends. Management has already reduced debt by C$155 million in 2024, proving its commitment to financial discipline.

Why Act Now?

• Lock in the Dividend: With the ex-date on May 23, investors have just days to secure the CA$0.35 payout.
• Capture the Upside: Analysts are increasingly bullish. CIBC just raised its target to C$44, citing Quebecor’s wireless growth dominance in Canada.
• Low Risk, High Reward: The stock’s historical stability (beating EPS estimates 100% of the time in the past year) reduces guesswork.

Final Call to Action

Quebecor is a rare “dividend-plus-growth” gem—a stock that pays you while it grows. With the ex-dividend date looming, there’s no time to waste. Buy before May 23 to capture the dividend and ride the stock toward its C$40–C$44 price targets. This isn’t just an investment; it’s a strategic move to build wealth through income and appreciation.

Act now—time is running out.

Data as of May 16, 2025. Past performance does not guarantee future results. Consult a financial advisor before making investment decisions.