BCE Inc. (BCE.TO)

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%.