BCE Inc. (BCE.TO)

A good 5% dividend. Prefers BPF.UN-T.

Sold all of her telco holdings about a year ago because of regulatory concerns. Thinks some of those concerns have been alleviated somewhat. The reason you tend to own telecoms is because they have very strong cash flows and provide 4%-5% dividends. There are other parts of the market she would prefer to invest in for income purposes.

Had good solid numbers in the quarter. You are not buying this for growth; you are buying it for yield plus a little bit of growth. 4.5%-5% yield plus 3%-4% growth and the multiple is now down to probably a base, which gives you an 8%-9% return.

Telecoms do not have any distinguishable seasonal trends. Basically the higher yielding equities have less correlation with the market. From a seasonal point of view, you could actually invest in these in the summer time. The chart is showing a bit of an intermediate-term weakness. We are still a week or 2 away from seasonal weakness from broad equity markets, so there is still time for investors to kick into this thing and really chase the yield. For now, stay away from this and get into it towards May or even into the summertime.

He prefers this to Rogers (RCI.B-T) because Rogers has a much bigger footprint in wireless, and they have been losing market share and subscribers.

Are the yields of 4.5%-5.5% sustainable on BCE (BCE-T), Verizon (VZ-N) and Vodafone (VOD-Q)? Most of the dividends are sustainable and he thinks they can afford to grow their dividends. BCE trades at a very high multiple at almost 16X earnings. Why people are worried about BCE is that it is not only a telephone company, but also a communications company. Verizon and Vodafone gives you much more of a pure play.

This is a very competitive space in Canada. Although there is price deflation occurring in this space we are spending more, which is a great combination for this company. What is surprising to him is how good their product really is. They are really doing well on their wire line growth. Great dividend yield.

He likes this. The stock has come down to the 100 day moving average, which makes it attractive from a buying perspective. The RSI has dropped-down to the oversold level which makes it very attractive. Nice dividend of 4.76% and thinks it is going to continue to grow. He also likes and owns Telus (T-T).

Recently sold it because he thought it was overly expensive. A good, safe yield. There are some CRTC issues but he does not think they are meaningful to the stock price. $50ish is a good re-entry point.

The media side will be affected by what’s happening with the CRTC but it is too early to gauge how much it will hurt them. He believes it will be only slightly negative for BCE-T.

People are thinking maybe there is going to be an increase in interest rates and have driven interest sensitive stocks down 10% or more. This would affect the BCE preferred. People can get terrified and sell these things down.

We can’t go wrong with Canadian telcos. Risks are in the form of new entrants, but there will not be any for the foreseeable future. For income investors this is a good place to be relative to the other two.

It pulled back from when the initial deal was announced. Glentel has approved the deal, but it won’t close until later this spring.

A great company and did a very good job of taking a lot of costs out. Also, their TV and wireless businesses have grown very nicely. Trading at about 17X earnings with a dividend of almost 4.5%. They can continue to grow their dividends. The big issue is that they have a lot of media assets, and you have to see if they all work out in the end.

BCE (BCE-T) or Enbridge (ENB-T) for upside? This one is the less expensive name and Enbridge is the one with the most growth going forward. Enbridge would be her preference.