BCE Inc. (BCE.TO)

Preferred ‘K’ series. Preferred market has lagged the bond market. They have in the past paid up, but he does not know how long they will continue to do that.

MACD never really came down. Has a pretty strong indication of strength. Looks like a pretty good place to be and it ranks well.

Doesn’t own any of the communication stocks. With all the turmoil going on in the industry and the possibility of a 4^th entrant, the competition is going to be severe. He has stayed away for the past couple of years. The dividend is safe, and if you are a senior and looking for flat to modestly rising growth, you are going to get this from this company. This one would be OK.

A defensive stock in a declining market and should hold up well here. 5%+ yield that grows on a regular basis. BA-T being taken on will sustain their cash flow. It is a good time to own this one.

It is pretty hard to find quality blue chip companies with yields over 5%. As people are exiting the commodities and economically sensitive stocks, they are gravitating towards the blue chip income producers, not economically sensitive. Dividend yield of 5.18%.

This is an interest sensitive stock. Has a yield of over 5%. His model price is $36.97, a negative 23% above what he considers Fair Value.

Thinks buying Bell Alliant (BA-T) shows a somewhat desperate reach for growth because there is not a lot of ongoing growth in the business now. This acquisition will add a couple of percents. Buy it for the yield, but don’t buy it for anything else. Thinks it is fully valued and wouldn’t surprise him if it is flat for the year. Doesn’t like the outlook for this business in Canada.

He is not in telecom right now. Likes the dividend yield on this. There will be volatility with events like a 4^th competitor. You are never going to go wrong holding this for the long-term. Prefers Quebecor.

Preferred Series ‘C’ rate reset shares. BCE used to be investment grade and no longer is. The company has been good to investors, but he does not think they will ever get back to par.

(A Top Pick Sept 18/13. Up 16.25%.) Still likes this. The telco sector has not been loved. It has broken its trend line, but corrections have to happen some way.

Doesn’t own any telecommunications at this time. Because of 1) regulatory uncertainties that are coming down the pike, 2) increasing intense competition and 3) some are reaching the saturation point. He would stay away at this time.

(Top Pick Jun 26/13, 23.39%) The stock plunged with threat of Verizon coming in but it didn’t happen. Still likes it and likes the opportunity of smart phone penetration beyond 70%. Still sees them as a utility. One of his core holdings, but he only buys it on negative headlines.

Traded yesterday at $48.57 and his model price is $36.97, a 24% negative differential. He feels investors are looking more at the 5% yield. This price and $50 is the maximum you are going to get.

(A Top Pick Aug 12/13. Up 22.23%.) Expect there will be another dividend increase. The main reason he holds it is because of the stability and the dividend.

BA-T is an okay deal for BCE. He does not know what they are getting. It is not very exciting for him in terms of BCE. He is not sure where the organic growth is coming from. Not sure what you get from the company going forward.