We continue to think investors will profit most — and with the least risk — by buying shares of well-established companies with strong business prospects and strong positions in healthy industries.

(In the current issue of Canadian Wealth Advisor, our newsletter for the conservative investor, we update our buy/sell/hold advice on a well-established company that has risen over 36% for us in the past year — and could go even higher. Read on for further details.)

That’s not to say that there won’t be surprises that affect every company in a particular industry. But well-established, safety-conscious stocks have the asset size and the financial clout — including solid balance sheets and strong cash flow — to weather market downturns or changing industry conditions. That makes them good picks for a conservative investor.

Telus: A conservative investor-friendly stock that faces rising competition

In the current issue of Canadian Wealth Advisor, we update our buy/sell/hold advice on Consumer stock Telus Corp. (symbol T.A on Toronto).

Telus is a good example of a well-established company that would be suitable for a conservative investor. Right now, it is facing rising competition in the most profitable parts of its business, including wireless. Even so, the company is thriving by upgrading its network, offering bundles of local phone, television and wireless services, expanding its retail-store network and more.

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Telus provides telephone services in B.C., Alberta and eastern Quebec. It also sells wireless services across Canada.

Telus’s established — and growing — network gives it an edge

The company’s newest competitors include three companies that recently entered the wireless market: Wind Mobile, Mobilicity and Public Mobile. As well, Shaw Communications Inc. plans to launch a wireless service in western Canada in 2011.

However, Telus is spending $1.6 billion to upgrade its networks to handle a wider variety of cellphones, including Apple’s hugely popular iPhone smartphone. That should help it attract and hold onto clients.

In contrast, two of its new competitors, Wind Mobile and Public Mobile, have had problems launching their networks. For example, several parts of Public Mobile’s Montreal network are currently out of service. That has forced the company to refund phone purchases or offer its customers free service until the network is fully operational.

New services, large retail network will help Telus compete

Telus bought the 113-store Black’s Photo chain in 2009. That gives it about 1,000 stores through which to sell its wireless phones, and adds to its presence in Ontario. As well, it has attracted almost 200,000 subscribers to its Optik TV television service, which it delivers over phone lines in nine cities in B.C. and Alberta.

Telus also recently raised its dividend. The new annual rate of $2.00 yields 5.1%.

As we mentioned, Telus has risen over 36% in the past year. In the current Canadian Wealth Advisor, we look to see if it could go even higher.

You can get our full analysis of Telus and 18 other investments suitable for the conservative investor in the latest Canadian Wealth Advisor. What’s more, you can get this issue absolutely free when you subscribe today. Click here to learn how.