Canadian telecom company Rogers Communications (RCI) might first attract investors with an attractive dividend yield. But the stock does also offer telecommunications growth potential in the Canadian market.

Rogers Communications provides cellular, cable and media services in Canada. Wireless services produce 57 percent of revenues, cable services about 30 percent and Rogers Media chips in 13 percent. Wireless and cable produce higher percentages of the total operating profits, as media accounts for only 4 percent. The company is Canada's largest cellular service provider.

For the first nine months of 2011, Rogers Communications reported adjusted net income of $2.50 per share, up 9 percent from $2.29 in the same period of 2010. Revenue for the nine months was up 3 percent to $9.25 billion. For the full year the company is forecast to earn $3.13 per share, compared to 2010 earnings of $2.96.

Dividends

The current 35.5 cents quarterly dividend gives Roger Communications stock an attractive 3.8 percent yield at $37 per share. Since doubling the dividend to 25 cents in the first quarter of 2008, the company has been boosting the payout annually by 3 to 4 cents per share on a quarterly basis.

A dividend growing at a 10 percent rate and a 50 percent payout ratio should be an attractive combination for income investors. Nevertheless, growth prospects for the company are focused on the rollout of new higher cost, higher margin services to customers.

For example, new mobile high speed Long Term Evolution (LTE) data networks in Canada's major cities allowed the company to add 160,00 subscribers as the company activated more than 600,000 smart phones in the third quarter. Cable remote manager services to program TV schedules and recordings from computers and tablets are an example of new tech in the cable division.

Analyst Rick Franklin at Edward Jones recently reiterated his buy rating on RCI, noting the company has some of the highest profit margins in the cellular phone service industry.

The company next reports on Jan. 25.