Telus Corp (T.TO)

A stable dividend grower, yielding almost 4%. A little bit of a premium on the price of BCE-T, but well worth it because the growth is better. An 18% return on equity.

The best growth projects and the best wireless growth of the 3 oligopolies in Canada. Have stated they can grow their dividend by about 10% a year, and for a while have been increasing it twice a year. TV business in Alberta has done quite well, and has taken share away from Rogers.

It makes sense if you are a long term investor. They are in the right space. Wireless is growing as we are doing more and more on our phones. The demand is there and their infrastructure is going to expand. He owns all three.

Thinks it has been unfairly punished. This has the best growth profile of the Canadian telcos, and at the same time it has the best track record of returning capital to investors through their buybacks or dividend increases.

This is at a very excessive valuation. When you look at any of the telcos, especially in Canada, they have had huge runs over the last 6 years. This is trading over his model price. Canada is a very hard place to find anything of value.

Bell Canada (BCE-T) or Telus (T-T)? He owns both, and probably a little bit more of BCE. 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. BCE is probably his favourite, simply because of the better yield.

Hasn’t owned telecoms in a while because of regulatory concerns, but thinks those concerns are being alleviated or receding. She is now taking a 2^nd look at the sector. This is a defensive, high quality telecom stock and is one that she would choose. You could start buying this here.

He owns three of the Telcos. T-T has good management and can compete well with BCE-T. It has been under pressure because of their Western Canadian exposure. Still they are okay. They are a good growth company. It is a good long term hold.

Telecoms? He would look at BCE (BCE-T) or Telus (T-T), but not at Rogers (RCI.B-T). The CRTC has given a bit of breathing room here. They are probably going to push through a 4^th carrier, but have probably kicked it down for a year or 2. Both names are very investable at these levels. They continue to benefit from gaining share at the high-end and healthy ARPU growth. Strong revenue growth, which is allowing them to be aggressive on retaining customers.

Stock vs. Stock. BCE-T vs. T-T. BCE-T has a fair market value of $61. It if hits that again it will set back. T-T is the same. It is in a rising phase right now, but is not the exciting value for you to make it half your portfolio.

He owns some, but thinks you basically should move on. You will have better total return in the US in the financials, regional banks especially.

Great dividend yield. They grew their wire line and wireless businesses. They split some of the CAP X with BCE-T. They have a great pricing strategy. He likes the stock here. They are more of a pure play.

Has liked the telecom area. His chosen company has been Bell Canada (BCE-T). This company has also been an excellent one. However, it does have a bigger exposure out west, especially in Alberta. The whole group will suffer when interest rates go up.

A lot of analysts and managers have gotten very negative on the sector recently because growth going forward is going to be slower than it has been and valuations are at the higher end. He won’t argue with that, but compared to the rest of the market, valuations aren’t really that high. Also, you are getting a 4%-5% dividend yield. He doesn’t worry about who the 4^th player in the sector is going to be. Doesn’t think there is going to be very much downside. You have earnings protection.

This would be his 2^nd choice after Bell Canada (BCE-T). The yield isn’t as big. A very smart management. They are doing all the right things. This is the kind of stock you want to have if you are a little bit concerned about volatile markets, which he is. A good stock to put in your portfolio and put it away and clip the dividend.