Verizon Communications (VZ)

She puts it in the yield play camp. Stable earnings and not tied to the economy. It won’t hurt you at these levels. Recent acquistion could be a balance sheet issue which she stays away from.

Doing extremely well in the US. 4^th quarter trailing free cash flow is 12%. Canadian telcos are not too keen on having someone with deep pockets coming to Canada. He thinks they will come.

He doesn’t own any communication stocks. Would wait for a pullback to about $47. Likes US communication business a little better.

The entry into Canada is going to be interesting but there are going to be some obstacles. Pretty decent yield and it is pretty safe as well. You are probably looking at 9%-10% long-term growth and paying about 18X earnings so it is not necessarily cheap. Telecom is a defensive space. He prefers Consumer Staples a little bit more than Telecoms. However, he thinks this is a keeper. (See Top Picks.)

US telecom operator. Telecoms in US and Canada are similar in that they consist of 3 or 4 large operators with kind of equal market share. Not a lot of organic growth. If you want this for yield, the current pullback might be a good opportunity to get in.

Expect you will run into resistance at around $50.00-$51.50. For longer-term basis, there are 2 ways to buy this. You wait for a new high to hit or you wait for it to come back to its support. RSI is rising on a shorter-term basis.

Yield has always been attractive. The price is pushed up so the multiple has gone outside the normal range. This represents increased risk.

An interesting opportunity. A lot of the money they have been spending is starting to pay off. Growing into its stock price. Pays a very nice dividend.

Prefers Vodafone (VOD-Q) which owns a big chunk of this company and trades at a discount to Verizon, so a cheaper way to play the same trend.

He got stopped out a month ago and now has repurchased it. Corrected 12% or so. They get the America leader. Best wireless network and they are making a big push into the Asia Pacific region. Nice dividend.

This is going to create an opportunity for dividend payers. If you look at them on a long term basis, it is more like a pullback in an ongoing bull market. He likes this one. He would be comfortable buying this.

Likes what they have done in terms of their mobile platform and growing it out. This is one of 2 that he would own in the US. (He owns AT&T (T-N).) Would be careful about over concentrating in the telecom area at this time. Dividend yields a very attractive relative to long-term bonds.