BCE Inc. (BCE.TO)

(Top Pick Jun 27/12, Up 7.97%) Dividend growth, steady cash flow, a great core holding with 5% yield. Astral deal fits.

Bell Canada (BCE-T) or AT&T? It all depends on what kind of account you are using. If it is a cash account, he would rather buy BCE and get benefit from the dividend tax credit and not worry about the currency. Likes Canadian telcos. You’re not going to make a fortune.

Telecoms dropped like a rock in the last week of the correction. Prefers this to Rogers.

The pullback in this stock was very aggressive. He had a feeling that the Astral deal was going to go through. Also, the issue with Verizon was well overdone. Yield of 5.56%.

Similar to ’07 when it was at low levels and was a terrific buying opportunity. BCE-T and T-T are the top performing telecom stocks in the world. BCE is in a sweet spot as they catch up to Rogers. Have great media properties. Sees them growing the dividend (5.7%) every year going forward. Fears about Verizon coming into Canada are overblown if they are even true. This one would be least affected if a big player did come in. Thinks the Astra deal will be approved tomorrow.

Believes that the problems on telecoms are based on concerns of competition. Also, there was an issue with so many people into the big dividend yielders that there has been a lot of profit-taking. Feels this one is still pretty safe. Pays a nice dividend.

His favourite telco in Canada. Likes its diversification into the broadcasting business. Thinks the selloff in the interest sensitives are probably overdone in the short term.

A good business. Has pulled back. The whole sector pulled back because of rising interest rates. Wait for a larger pullback to get it.

It has broken support levels and is in a downward trend. It is below its 20 day moving average and underperforming the TSE, so you don’t want to be there right now. Right now, it is not attractive. Seasonal strength is in the summer (Jul-Oct) but he is not seeing signs for BCE yet.

(A Top Pick June 8/12. Up 14.4%.) Still likes it and still expects dividend increases.

The whole interest-rate sensitive area is coming off pretty fast and hard but this one was so close to his risk management level that he felt it was a really good time to add more.

(A Top Pick Jan 3/13. Up 9.14%.) Solid, Canadian infrastructure company. Feels good about the dividend policy going forward. Recently seeing some signs of consolidation and cooperation in the telecom industry. Still likes.

Telus (T-T) or Bell Canada (BCE-T)? Feels they are both great companies. One of the problems is that they have run up a fair bit in the last little while which goes back to the trend that people have put money into dividend stocks. There is a lot of expectation in these things. There may be some short-term volatility which will allow you to buy half a position and the other half on a pull back.

Not a bargin here, it's still got a great yield and the dividend will keep growing. But the earnings growth will start to slow. It's right near a new high.

Lkes it for the yield and the growth. He likes all the telecoms.