BCE Inc. (BCE.TO)

Most investors are waiting for an equity issue. She doesn’t think the stock is going anywhere. Telus (T-T) is a better choice as they have a better balance sheet.

BCE is in a less favorable competitive position relative to their peers. They are on the verge of having to make large capital gains, like into fibre optics. However, they can now do so with better, more efficient technology than their peers. The shares do have the highest dividend yield of any of its peers and this why they hold it. He thinks he would add to positions if it were to drop into the mid-$40 range. Yield 5.7%.

He sold it at $62 a year ago based on chart patterns (it hit $62 three times before). BCE is reaching support in the low-$50s like it is now. He hopes it breaks $60 when he'll sell it again. (5.7% dividend, Analysts' price target: $59.42)

Down 14% YTD. He enjoys using the product. The yield is attractive. We're in a growth environment now as defensive utilities are out, like all telcoms. He added to his position. Patience will pay off. 4.5% dividend

He would hang on to it and maybe buy some more. It is considered a defensive stock. A lot of utility and telecom stocks have come down because of higher interest rates. The dividend is safe and their interest is to grow it.

The PE is around 17 with a payout ratio of 80-90% -- very high for a telco. They are in a good space in Canada and the stock may be impacted by the general move towards bonds. He is fearful of increasing regulation in Canada. The dividend is safe, he feels. Yield 5.8%. (Analysts’ price target is $59)

If you are looking at them at this point in the cycle it can be painful. The fixed income proxies and bond proxies are selling off. If you look at the multiple you will find it is still pretty reasonable. This is different from a newspaper. This is an absolute necessity.

Even with the telcos bouncing up in the summer, BCE did not. Little growth here. People buy this for the dividend. He wouldn't buy any telco now, and BCE is among the weaker ones.

A long-term holding for him.. It has increased its dividends a lot over history, though the recent share price is lagging its peers. Dividend increases are going down. A few acquisitions like Manitbo Tel, could wring out some synergies, but there are no new purchaes to support future dividend growth.

It's supposed to do well in summer, but rising interest rates are pressuring defensive stocks. It's had a slight
breakdown, returning to 2015 lows. If it breaks down, it'll probably return to support at $48.

He doesn't like telcos and BCE is his last choice in this sector because they have the greatest expsoure to the legacy telecom business. Wireline telephone service is declining, especially among Millennials. If you want income, look at the banks.

BCE vs. ATT. Stock performance has been similar over last year. Comes down to the wireless space. For ATT, it’s the only thing they do, whereas with BCE it’s only one thing they do. In Canada, there’s more runway for wireless growth. He’d go with BCE, good dividend and cash flow. It’s a little early to own high dividend names, but once interest rates start falling, these names will look interesting.

She holds this for some of her income investors, and she likes the yield. It has a consistent record of increasing dividends. The stock price has pulled back with rising interest rates as have other telecom companies. The dividend is safe, and she expects the business to grow by 4 to 6% per year. Yield 6%.

The dividend is safe and should grow over time. They are seen as interest rate sensitive and so have underperformed this year. In a more difficult market environment, this could regain favour with investors, so hang on to it.

He would not sell it. It lacks growth. They are well positioned as a media company. It has pulled back because of a lack of interest. He thinks they will make acquisitions over the next 18 months. This one does not provide a lot of excitement for investors.