BCE Inc. (BCE.TO)

High yielders with high interest rates make it a tough environment. Not worried about the Rogers merger. Spent lots of capex on their network. Will continue to do well. BCE has laid off people, changing how their business will look. Really nice dividend yield.

Avoid all Canadian telecom names. Pricing pressure coming. 

Telecom sector is good exposure for income investors. BCE has the higher yield, close to 6%. Telus yields about 4.5%. Both increase dividend each year, generate free cashflow, build out 5G network. Immigration will be positive for the sector.

Stable business with strong dividend yield.
Not a growth company - don't expect capital gains.
Good exposure to media.
Does not own shares.

A recent buy for him. Largest telecom business in the country. Earns a higher return on shareholders equity of about 16%. Very consistent dividend grower. In a position of financial strength relative to all its peers. Yield is 6.07%.

ATD has more growth prospects. Total acquisition is really important, as it gives them more geographical diversification in Europe, and they get more stores. Acquisition was at a good price. Debt to EBITDA has gone up, but this is typical and will come down. Great job of buying businesses and integrating.

BCE has a 6.4% dividend yield. Reported decent numbers, except media division was hurt by advertising. Own it for a nice dividend yield that will slowly grow. 

ATD gets the nod, but he owns both.

Big runup through 2021, pullback in line with broader markets. Moved sideways through October. For the stock to really get going, he'd want to see a series of higher highs. Seeing higher lows, which is positive, but not seeing the higher highs. Doesn't mind nibbling to add exposure here. But reduce exposure if it takes out lows of the last couple of weeks and especially those at the end of December, as that would tell you it's really going to retest the October lows.

One to own for a portfolio. The dividend is fairly safe, a cut unlikely. The stock has a constructive chart and he's been adding on dips.

6% dividend yield. A better bet than Telus. 

Sees very little risk to the dividend, absolutely safe, more likely to increase it over time. Businesses are solid. Great content assets. He'd pick RCI.B for growth. Valuation is more than RCI.B, but cheaper than Telus. Yield is 6.4%.

Nothing wrong with this, but it's not his favorite telco. It lags in growth and capital appreciation. Held back by over-relying on wireline subscription. If you own, the dividend is stable to collect.

Today's theme is simple, high-quality, essential businesses that don't need access to capital markets. If we have a slow market and you're accumulating shares as you go, you're compounding your investment. In the last 2 recessions no one has not paid their cell phone bill, it's the last thing to cut. Yield is 6.35%.

It has raised its dividend again with dividend growth being 3 to 5%. annually. Although growth has slowed for Canadian Telcos, BCE is one of the biggest providers of cell phones.

Significant capital expenditures. Announced a further 3-year plan, and that will stress the EPS and cashflow numbers. Once the build is complete, capex should decline and earnings should grow. Dividend increases should, perhaps, be slowed. In 3-4 years, the payout ratio should normalize. In the meantime, it's vulnerable to something going wrong, payout ratio and credit rating getting stressed, dividend getting cut. He doesn't see that happening, growth is predictable and not as subject to inflationary pressures. Still expensive at these levels, try for mid-low $50s.

High quality, as blue chip as you can get. Stable, recurring revenues. Nothing fundamental to change the thesis. Share price dropped against the macro backdrop. Yield is 6%.