Bell Aliant (BA.TO)

Just broke below its 200 day moving average today A stock like this is not going to be traded on its 200 day moving average. People are probably buying this for the yield more than anything. It is getting down to the level where it was in 2012. This means it is going to be a tricky stock right now because of yield sensitivity, bond yields, etc. This could continue breaking down to the low $20 area.

Doesn’t do anything in the market. Goes down to $26 and change and then goes up to $27 or $28. When it gets to the higher price, he sometimes takes shares off and then buys them back when it gets back down to $26. Great dividend yield. It’s in the Maritimes and in northern Ontario and they are putting a lot of fibre into the ground and have been very successful with this.

Would a 10% correction hit the stock very hard? Companies like this get hit a little bit less in a big downturn, but it will probably go down too. Dividend still looks safe. Dividend coverage is 90%, which isn’t excellent. Having some competitive pressure with Rogers (RCI.B-T). Not his favourite name at these levels. If you own, hold it and Sell Calls to get the double income.

Got a little bit of this on the spinout from BCE (BCE-T). A good, stable business. Doing a lot of things out East in terms of expanding their fibre network similar to all the telcos. In sort of a stagnant marketplace, not a lot of growth. Yield is well covered and there is always the option down the road that BCE could pull it back in.

(Market Call Minute.) You’re going to get the dividend but no growth.

A slow growth name. They are trying to build out their fibre to the home, which is very expensive to do. Have pension issues and need a lot of capital for the fibre to the home build out. Not particularly cheap. 7.1% dividend yield and doesn’t see a lot in the way of increases right now. Expect this would be very interest-rate sensitive.

Stock trades in a channel with the lower end being at around $26. Well-run. Not only in the Maritimes, but also into northern Ontario. Have gotten into the fibre optics area very successfully. Once it gets down into the $26 range, it is a Buy. If it ever got to $29, he would probably take some profits with the hope of buying it back at a lower price. 7.1% yield.

Bell Canada (BCE-T) or Bell Aliant (BA-T)? Basically this is a personal choice on which one you want to go for. Bell Aliant is not as actively traded but provides a higher yield. Has a trading range between $25 and $28 approximately so whenever the stock gets down to around $25, that is the time to buy. When it gets to around $28, take some profits. We are currently right in the middle of it. There are no strong technicals or seasonalities in this. They are both yield situations.

Nice dividend and looks relatively safe. Valuation looks a little stretched to him. He never buys stocks just for the dividend yield, he wants growth as well.

Slow growth and big dividend and thinks that will continue. They can maintain the dividend. Good stock.

The dividend on this is definitely safe. He is a growth investor so it is not something he would buy. Doesn’t believe that you will see any growth in this. Growth in the industry is basically in wireless. There is no wireless in this one.

It is strictly a yield play, land locked on the east coast. Nobody knows the value of this better than BCE, so they won’t pay a premium.

He buys this for clients who want a good steady cash flow from their portfolio. You buy it when it gets down to $25-$26 and sell when it gets up to $27-$28. He can’t see any cut in the dividend. Nice, solid dividend paying stock. 7% yield.

7% dividend. Would possibly buy it but has not considered it. Doesn’t think it will be around for much longer and will get taken out by BCE. You could go ahead and buy it.

Big dividend, lack of growth. It will not go anywhere but you get the 7% yield. Not a lot of risk and they won’t cut dividend this year. You get a return of your capital. They are depreciating faster than they are investing. Not sure how sustainable this is. This one won’t move much. Don’t think BCE will buy them any time soon. Don’t hold your breath.