When it comes to investing, every Canadian is different. We all have different preferences, goals, and risk tolerances. So, there are many factors to consider when buying any stock, even a high-quality and well-known business like Rogers Communications (TSX:RCI.B), which is currently offering a 3.8% dividend yield.

As one of the largest telecommunications and media companies in Canada, there's no question Rogers is an impressive business with tremendous long-term growth potential. So let's look at Rogers stock today and determine whether it's worth buying for its 3.8% dividend yield.

Is Rogers stock worth buying today?

When looking for dividend stocks, there are several important considerations you'll want to figure out before you pull the trigger. For example, investors often look for the highest yield possible, which can be beneficial if the dividend is sustainable.

Oftentimes, though, a stock's yield will rise as it becomes more risky, and if you're not careful, the higher yield can make the stock appealing at a time when it's on the verge of a dividend cut.

Therefore, although Rogers' dividend yield is just 3.8%, well below that of numerous TSX stocks, as well as its peers, the good news is that the dividend looks sustainable.

Growth ahead

Another important consideration for investors is how much growth potential you expect from your stock alongside the passive income it generates for you.

Generally, the more money a company pays back to investors and the higher its dividend yield, the less cash it will have to invest in future growth. So, stocks that offer a 7% or 8% yield may be more compelling for the passive income they generate. However, over the long haul, those stocks likely won't grow their earnings as much.

In Rogers' case, it may pay less of a dividend to its investors but the stock is consistently investing billions to grow its operations. In fact, in the last year, it's continued to invest in 5G technology and installing its fibre infrastructure. Meanwhile it's also invested in acquiring new media content as well as becoming the sole owner of Maple Leaf Sports and Entertainment.

Investing in growth

Therefore, while it may offer a lower yield than other stocks in Canada, including some of its main peers, a 3.8% dividend is still significant. Plus, when you factor in Rogers' long-term growth potential, it's certainly one of the top Canadian stocks to buy now.

In fact, with all these new acquisitions and investments Rogers has made, analysts expect significant growth over the coming years. This year, analysts estimate its normalized earnings per share (EPS) will increase by 5.6%, with more than 9.5% growth expected in each of the next two years.

So, there's no question that Rogers is one of the best Canadian stocks to buy now and hold for the long term, especially if you're looking for a stock that can provide both passive income and significant capital gains.

How is the communications stock valued today?

The good news for investors is that as much potential as Rogers has over the coming years, it also trades at a compelling valuation today.

In fact, with Rogers share price hovering around $52.50, it currently trades at a forward enterprise value to earnings before interest, taxes, depreciation and amortization (EV/EBITDA) ratio of just 7.5 times. That's below both its 5 and 10-year average EV/EBITDA ratios of 8.4 times and 8.3 times, respectively.

In addition, its forward price-to-earnings (P/E) ratio is currently just 10.6 times. That's also well below its 5 and 10-year average forward P/E ratios of 14.4 and 15.3 times, respectively.

Finally, even its current forward dividend yield of 3.8% is above its historical averages. Rogers' 5 and 10-year average forward dividend yields are both 3.4%, so the fact that you can buy it today with a higher yield shows the value it's offering investors in this environment.

Therefore, if you've got cash on the sidelines that you're looking to put to work in a high-quality dividend stock that can also provide years of capital gains, then there's no question that Rogers is one of the best companies to consider today.