BCE Inc. (BCE.TO)

Looks very interesting. Technically it recently established an upward trend, above 20 day and strong compared to market. On a seasonal basis, it is strong form beginning of December to beginning of March. A good one to hold.

Largest telecom in Canada also with media assets. They did an equity raise to deleverage the balance sheet. Low volatility and good history of raising dividends. A good long term hold and a yield of 6.4%.

At the close of the day they did a big Bought deal, $750 million. Their balance sheet is a little bit stretched. They wanted to acquire another company, but will require capital. He sees more dividend growth and earnings growth going forward.

AT&T (T-N) or BCE (BCE-T) for dividends? Although they are both mega names in the telco space, they are quite different, primarily because the telco space in the US is much more competitive, which means price wars. The margins are much thinner in the US. AT&T’s share price since about mid-2012 has really done nothing. He would sell AT&T and buy this.

He bought on the breakout at around $55. When you see a long base like this one had, followed by a break out, you should think about getting in. The chart shows lots and lots of upside. Has already seen a bit of a challenge near its old high of around $59. If it can break through $59, it will look pretty good. He is in it for the next number of months.

At current levels this is looking a little bit expensive. Has had a great run. Just put up a fantastic quarter, but there were some one-time items in the quarter that may not be recurring. Stock is still pretty attractive with about a 4.5% yield. There will still be some dividend growth on top of this of about 5%-7%. Wait for a pullback before buying.

Telus (T-T) or BCE (BCE-T)? BCE-T is his preference. Their dividend is certainly sustainable.

It broke out of a trading range. It had a pull back last week to create a great entry point.

Really had a nice beat today with $0.93 versus $0.84. Thinks the problem with the telecom space is that the whole area got bid up fairly highly. Trading at around 18X versus its 14X five-year average. He likes it and it has been doing really well, but it’s a name that he would add to on some sort of weakness.

Doesn’t own any Canadian telcos because there are several potential headwinds. Looking at wireless, LTE penetration has really peaked in Canada, so you are going to see many incremental pricing gains. Looking at the cable business, you are going to be challenged by cord cutting. This is a pretty invasive theme in the US. The free cash flow yield is 5% and you are going to get dividend growth. You are probably going to get a better entry point here.

We saw a spike up in February and it deviated significantly from the mean. Technically it had broken out of a range. He feels this is where BCE-T is now headed and if it gets there, that is where he would sell it.

He has had this for quite a while. It has just had a breakout move and he is looking at $78. He knew they would lose the NHL, but it improved their profit.

A name with a decent, safe dividend yield. It is like a bond. BCE-T has been having good inroads into two other companies’ customers. Investors are coming out of the commodity space and flowing money into names like this.

If you are worried about markets and you think markets are going to continue to plunge for a very long time and fear is what is driving your investment philosophy, then this is one of those fairly defensive business models, and has a nice yield. It has done well over the last few years, and its valuation has crept up. He would suggest you try to find something that has been beaten up.

Longer-term this is definitely on an upward trend. Short-term there is a problem. The stock recently broke a downward pattern and is not acting very well. On a seasonal basis, historically this has done reasonably well in the summertime, but this year not so much. He would like to see confirming evidence that it is holding above the longer-term trend line. If it does that, look for an opportunity to accumulate sometime between now and the middle of October.