Bell Aliant (BA.TO)

(Market Call Minute.) There is no growth here. This is a yield play.

Feels the dividend is secure. Price has fallen substantially recently. A lot of US investors have been Shorting and he feels that eventually they are going to run out of steam and they will have to cover.

A core holding. Safest highest yielding company out there. 40% owned by BCE. Their cash flow will be growing. Are laying fiber to the home via telephone pole.

Have been spending a lot of capital building out their wireline and fibre to the home. A lot of people are conscious about the dividend and the payout. If you dig through the numbers, he feels the dividend yield is a real yield.

Dividend is safe, but at this valuation, he wouldn’t be buying. There is no growth. If he owned, he would possibly be selling Calls against it.

Generally not a big fan of Canadian or US telcos. They are slow growers and this is one of the slowest. However, you are probably better off with this then you are in most corporate bonds. Has a higher dividend and does have some growth to its cash flow. If you are holding this for a bond like return or better, it is not a bad place to be. If you are holding it because you want to be in equities, this is probably not the right position.

Big healthy dividend but not a lot of growth. Earnings forecasts, going out this year and next, are pretty flat. A little slippage this year so there is not a lot of dynamic momentum behind the stock. Recently has been slipping back a little. There is some risk to about $24 a share from a technical standpoint but that's all he can see. He has a Hold on the stock. If it goes back to $24, he would probably put it back to a Buy.

Only has in the mutual fund because he got it when it was spun out of BCE but he has not accumulated any more. It is largely legacy assets with a good cash flow. Not a lot of growth potential.

A pretty stable stock over the last couple of years, but the dividend is higher than their earnings so that is a bit concerning. Usually if a company has to borrow to pay the dividend that is not a good thing. You won’t get much growth out of this one. Would not be surprised at a dividend cut.

Great dividend but not a lot of capital appreciation. It seems to get down in the $25 range and then goes back up to $28. He owns it for the dividend, which he feels is relatively safe.

Has been heading down a lot because of its interest sensitivity as well as increasing competition in their business. EBITDA.in the latest quarter was a little bit disappointing. Yield is about 7.5%, but doesn’t see a lot of in the way of capital gains over the next year or so.

(Market Call Minute.) A yield play only without much growth. He would prefer to go upstream to Bell Canada (BCEP-T) or Rogers (RCI.B-T).

(Market Call Minute.) Too exposed to wireline and that is not a good business.

7.2% dividend yield is perfectly all right. You are dealing with slightly less prospects, more competition. Bell Canada (BCE-T) owns a very big position and is probably not going to take it out as it doesn’t need to do that.

Not a big believer in this. With this one, you are going to get the dividend and that is all you are going to get. This has no wireless which is where the growth is.