BCE Inc. (BCE.TO)

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.

Didn’t seem to get hit very much during the downturn. If you are worried about volatility and timing, it is a nice place to hide. Not very economically sensitive. Safe dividend of 4.86% currently.

This is a slow growth, regulated and changing business. Stock price has come down a little off its highs and is pretty reasonable value. A very, very nice dividend. On Dec 16, Pick and Pay kicks in, which might put some pressure on the revenue line. This is probably part of the decline we have seen over the last year or so. He would prefer Rogers (RCI.B-T).

A great company that is making lots of money. Well-managed. Buy it for the long run. Last week the only sector that was up in Canada was telecoms. It has defensive characteristics and has a place in your portfolio.

The environment we are heading into, with volatility picking up and a potential correction on the horizon, a name like this makes sense as part of an overall portfolio. One of the lowest beta stocks on the TSX. It is something you can live with in a time when volatility is picking up. Also, the smart phone penetration in Canada is well behind what it is in the US. Is that picks up, this company will benefit. Dividend yield of 4.85%.

(Top Pick Sept 22, 2014, up 8%) They are in cell phones, tv, bought for yield as well as growth. Slow growth, high yield.