BCE Inc. (BCE.TO)

A relatively defensive investment, and if you want yield it is probably a good long-term hold. Wire line is being offset by wireless. The telcos have all been good at restructuring and cost cutting on their wire line side. They generate a lot of cash flow and are kind of focusing on their wireless. Everyone is taking shares from each other and it is a type of oligopoly.

Chart shows a little bit of an issue on the top side, only because it has gone there before. It got to $60 and stopped, went up again and then came back again. It is working on resistance or support. Now you want it to turn and go back up to those levels again. He likes the name.

(A Top Pick Nov 19/15. Down 7.43%.) Bought this as it broke out of its consolidation at $56. It looked pretty good for a while until the December selloff. He is not going to panic from a short-term movement like the current one. If it stayed below his support line, and the market started to move up, he would be out of it. He is going to watch it for a few more days. It seems to be trading in its old band and he is comfortable with that.

Shaw announced they were buying Wind Mobile and this sent all the telcos down. It means there is another strong player in the sector. She moved out of telecom a couple of years ago on regulatory concerns. The government wanted more competition. BCE-T was down the least of them all. It is still a defensive play with an attractive yield. She thinks today was a knee-jerk reaction. Don’t sell here. Wait and see how this plays out. She would not jump in right now.

He has a stop/loss on this, only because if pension funds start selling this is one of their big picks and he might have to get out. Likes the structure where they are changing over the deal that they did with HBO. They are kind of competing with Rogers (RCI.B-T), not on the cable side, but on the content side. Dividend yield of 4.82%.

This gives you stable growth, strong free cash flow and a very steady dividend growth. Dividend is very attractive at 4.5%. Going forward, the average revenue per user of wireless, smart phones, etc., is expected to move higher as there is greater consumption as people move from 3G to 4G and continue to buy more powerful smart phones and tablets. They recently signed an exclusive agreement with HBO, which has great content. However, if interest rates start to move higher, some of the telcos do start to weaken. He is not as concerned about this in Canada.

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.