BCE Inc. (BCE.TO)

With rates as low as they are, he is generally positive on the income, however, cautious on the sector because of media content. The real work is around the land lines. Over half their EBITDA is generated from land lines, and he would like to make sure that cord cutting does not accelerate. A large part of the driver on this company is on the income side of things. Sold half his position a long while ago. A good generator of income.

He loves the dividend. The last time he recommended this was when it was $58. It ran up to $63 and is now backing off. If it gets down to $60, this is a slam-dunk. They seem to have absorbed Manitoba Tel without too much trouble. If you want a nice dividend, why go any further than this? 4.76% dividend yield.

A good name for an income investor. It has an attractive yield. Recently closed on the Manitoba Tel acquisition, so there should be some synergies. She has a target price of $63-$64 which will give you an 8% capital appreciation, plus the yield of 4.73%. The dividend will continue to be increased over time. If there is a pullback, the stock should hold in quite well.

A core holding for him, but wouldn’t buy it today. Has had a really, really nice move. It’s been a great portfolio investment, but it is now getting a little toppy. The RSI (relative strength indicator) shows a sense of enthusiasm. As it ran up to the mid-$60s, enthusiasm got quite high. He’d like to see that wane before he took another position. Great yield.

(A Top Pick Feb 11/16. Up 14%.) Buying this is buying a business that is established. Multi-revenue streams. Pays a great dividend, and combined with share price appreciation of 3%-4% a year will give you a 6%-7%.

Just reported earnings which were extremely well received. This is just within a whisker of its all-time highs. He has to give them a lot of credit on their customer service.

He would personally not buy this. His clients have some, but it is a very small part. The competition is heating up with the various channels and media that is coming on. The demand is exploding, but it is also diversifying.

Not cheap at around 17X, which is ahead of its 5-year average. 57% of revenues come from wire line which is not good, because of increasing competition from cable. Their wireless numbers are probably going to be pretty good at about 30% of their revenues. He sees growth of about 4% this year over last year. They will be boosting their dividend every year by about 5%. A name that you just Hold, and sell some Calls on it.

A great income name and has been a great dividend stock. 4.7% dividend yield, and expects that will get increases of about 5% over the next few years. That is likely to equal what the earnings growth is going to be. They’ve had some good penetration on the wireless business. Has a great deal with Telus (T-T) which allows them to lower the costs of their infrastructure. Trading at a high valuation of over 18X earnings.

The media sector has been doing well recently, and telcos have had a bit of a bounce over the last couple of months. These are less economically sensitive companies that people have gone to hide in while pulling back on more economically sensitive companies. From a sector perspective, there are better places to be. He would prefer to be in media such as Comcast (CMCSA-Q) or CBS (CBS-N). Dividend yield of 4.7%.

Extremely well-managed and clearly the dominant player in Canada. They’ve done a great job of diversifying into media type businesses. Continuing to increase their dividend. His concern would be that cellular telephone growth is probably largely behind us. Most people are disconnecting their main line. The TV business is under pressure as advertising goes away. He doesn’t think they are in danger, but the future is a little tough. Not a stock that he would own.

His preferred name in the telecom sector right now. Pays a good dividend. Doesn’t know that you will see huge upside potential on this. If you can get a few percentage on capital growth and the dividends, you are still getting into the high single digits.

Has owned this several times and it has been his biggest position, but last year started to take some off the table at around $64. Chart shows it is now having a new break out, which is positive. There is going to be some capping when it hits resistance at around $64. You could put a toe in the water, and there may be an opportunity to add to it later.

This company’s preferreds are really broken down into 2 types of resets. 3 have a fixed reset and the rest do not. BCE has generally been pretty fair resetting their coupons, but all of the group are trading between $.50 and $.70 on the dollar, all at a discount. The problem is, there are so many of them that the whole group needs to move. Their running yields are around 4.5%, and have been resetting in and around 4.5%. With this, you are really making an interest rate call and using BCE as your credit.

She loves current management. They are thinking of taking the TSN channel and increasing prices to restaurants and bars to find another revenue source out of it. They have new and inventive ways of monetizing their assets. It is her favourite of the three telecoms.