BCE Inc. (BCE.TO)

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.

A Hold at these levels. Hasn’t had a major correction, but has kind of fallen in line with the Canadian market in general. The dividend looks awfully good, getting close to the 5% level. A very safe dividend. Good generator of free cash.

Bell Canada (BCE-T) or Telus (T-T)? He owns both, and probably a little bit more of this one. Telcos are sort of a utility and he likes the sector. Dividends are safe and the stocks are easy to buy and sell. A good basis for your portfolio. This is probably his favourite, simply because of the better yield. He sees them increasing the dividend again in the future.

A great name. Has a bit of everything. On the wireless side, it is really the one that is playing catch-up, which is an enviable position to be in. On the content side they have live sports in conjunction with Rogers (RCI.B-T), but they have some good content. In later 2016 you are going to get the "pick-and-pay" model from the CRTC. 5% yield.

(Market Call Minute.) This has pulled back on the CRTC Internet thing. This is a Hold, but a buy at $50.

They are down a little bit because of the recent CRTC ruling of having to give wholesale access to fibre on the home, where they have been a big investor. Doesn’t think, in the intermediate term, it is a huge deal given that what they have to wholesale is only 10% of their business and hasn’t really taken off. They generate a lot of free cash flow and will put a lot of that towards dividend growth.

Full disclosure: BCE is the parent of their network. He feels that BCE represents a really good buying opportunity. Lows are in place for the last 6 months. Thinks it is a good risk reward. If it gets above $56.00 it looks very intriguing. Target is in the low $70's. Could also look at buying Telus and AT&T, but thinks BCE is more interesting because it offers a full compliment of services.

He found it got incredibly expensive. It has flat lined. Their dividend is high and capital structure is high. The Netflix’s of the world are cutting cable revenues. It has a great free cash flow yield. He just needs some kind of entry point like a 5-10% pull back. It trades at a high level globally. Don’t buy any of these now. He prefers legacy assets at the moment.