Rogers Stock Down 16% Offers 4.1% Yield for Retirement Investors

Retirement investors are facing a significant challenge due to inflation, which can erode the purchasing power of their dollars over time. According to the Bank of Canada, an average rate of 2% inflation can reduce a dollar's value by approximately 45% in 30 years.

Dividend stocks can help mitigate this effect by providing regular income without requiring investors to sell shares. However, retirees should not only consider the yield when evaluating dividend stocks, but also free-cash-flow coverage, debt, dividend growth, and the company's ability to sustain earnings through recessions.

Rogers Communications (TSX:RCI.B) is one such stock that has recently closed at around $49, approximately 16% below its 52-week high of $56.27. Despite this drop, it offers a respectable starting paycheque with its $2 annual dividend providing a yield near 4.1%. The company provides wireless, internet, television, and business communications services across Canada, as well as substantial media and sports assets.

Management expects 2026 free cash flow to be between $4.1 billion and $4.3 billion, approximately $800 million more than in 2025. This increased cash generation could accelerate debt reduction while Rogers develops its sports and media holdings into another earnings engine.