Bell Aliant (BA.TO)

COMMENT
Hold or switch to Rogers (RCI.B-T) or Telus (T-T)? Chart shows a distinct downward trend. Showing early signs of support. In the last few days a number of analysts have been more favourable to this stock. Technically not looking great. Fundamentals are starting to look better. Probably OK if you’re looking for yield.
BUY
Likes this company. Has come off a little bit and he would be a buyer at this point. Pays a very good dividend. The key to this company is that they are owned by BCE (BCE-T) and at some point there may be a takeout from it. Also, have done a very good job of growing their business and continues to pay their yield. Have some very good organic growth coming in the next little while.
HOLD
(Mark Call Minute.) Likes this one at this price. A declining business, but is declining so slow, the yield is safe.
HOLD
Essentially a regional subsidiary for BCE (BCE-T). Facing some competition in Eastern Canada but they continue to spend money to upgrade their network. Their position is sustainable for the foreseeable future. Dividend is not in doubt. Doesn't see a lot of upside.
HOLD
(Market Call Minute) No growth but has a nice yield.
PAST TOP PICK
(Top Pick May 27/11, Down 2.07% Total Return) Disappointed by this. There was a rumour about them cutting their payout but the company doesn’t see it. Has been adding to positions at these levels. Owns it for the dividend and doesn’t expect much capital gain.
COMMENT
Good little company and they are making good inroads. Have rolled out their fibre to the home across most of their network. One of the concerns is that they are going to expand that rollout, which will obviously put some pressure on their capital but she considers it a stable company. The longer-term challenge is where the growth comes from.
HOLD
(Market Call Minute.)
DON'T BUY
Probably not around in 15 years and he would not buy it as a short-term hold. The dividend is healthy but he doesn’t think it is sustainable. Will be taxable in 2013. Prefers MTB.
COMMENT
He owns some but it is not that big holding for him. Would rather have Bell Canada (BCE-T), Rogers (RCI.B-T) and Telus (T-T). 7.21% yield is reasonably safe.
COMMENT
He owns this specifically for the dividend. Doesn't see much chance of capital appreciation. 7% dividend is probably safe for the next couple of years but becomes questionable after that. He will continue to hold for a while, but doesn't want to be there when the dividend is cut.
DON'T BUY
Sometimes high dividend is a sign that investors are making a bet that the dividend is not sustainable. The old wireline business has a problem. He would be cautious. Would prefer BCE (BCE-T) that has a 5.5% dividend yield.
PAST TOP PICK
(A Top Pick May 27/11. Down 1.05%.) Still buying.
WATCH
Good for long-term hold in an RRSP? Primarily landline and long distance wireline business, which is a declining and maturing business. Investing in growth, primarily in the Internet ITPV, which is very positive. Stock got hit, largely because of an expectation of a dividend reduction. Has a number of options. Could 1.) raise capital, 2.) cut growth capital, which he doesn't expect or 3.) readjust the dividend rate. Current dividend of 7.2%. If you buy, keep an eye on it.
PAST TOP PICK
(A Top Pick July 5/11. Up 4.6%.) 4.85% Series A. This is a rate reset. Numbers just came out and they were a little bit weak on the local and long-distance but doing better on data and Internet service.
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