Bell Aliant (BA.TO)

A buggy whip type of business. Landline business in Eastern Canada that Bell (BCE-T) spun out. Landlines are a slowly dying business. Until that happens, they make good money, doesn’t have to spend a lot of money installing new infrastructure, so he thinks the 7% dividend is safe.

(Market Call Minute.) Hold if you like yield. You won’t get much growth out of it.

Expects no capital appreciation because it is wire line. Need to sign up people for fiber to the home. Will run out of tax credits soon. Dividend is safe for now but would not comment on the long-term.

(Top Pick Aug 8/11, Up 9.10%) Sold because of liquidity. He had a position in BCE but this one did not do well. He had a better place to put money.

Owns it for the dividend but was pleasantly surprised that the stock has been acting a little better. This is not a growing business. In Atlantic Canada and rural Ontario/Québec. Mostly wire lines. The part that is starting to grow is television so they are putting fibre to the home, as much and as fast as they can in the Maritimes. This will do 2 things; bring TV to the home and very high-speed Internet as well. Looks like the dividend is safe for the next year or 2.

Pretty mature business. Wire line in Easter Canada. Payout ratio is pretty lofty. Company is doing Cap-X and have to find a balance between a big dividend and Cap-X expenditures. He is cautious on the dividend.

He uses this as a “cash equivalent” so when he has access cash he puts it in here rather than overnight term deposits. You won’t have dividend growth with this one. Increasingly, people will sell out of this as they grow concerned that the dividend might be cut. Payout ratio is low. Wireline telephony is in secular decline.

Attractive for the 7.2% dividend yield. Payout ratio is high. Doesn’t expect there is hardly any growth. He prefers something with much better growth.

Offering fibre to the private homes in the East. Dividend yield of 7.4%. He would rather own Telus (T-T).

(Market Call Minute.) No growth but has an attractive yield. A Hold for income investors.