BCE Inc.

BCE-T

Rogers? He doesn't follow the telcos daily, but he prefers telcos over cable companies. Telus and BCE have nearly completed their 5G install, though Rogers is converting too. BCE is better than Rogers, which blew its budget on the NHL broadcast licenses; Canadian teams haven't gone deep into the playoffs which has limited Rogers' revenue. In fact, there's more growth in soccer and other non-hockey sports, so that's a tailwind for BCE's broadcasting arm. All telcos will be impacted by the unlimited data plans now on the market. BCE has great assets and a lower payout ratio than Rogers.

A lot like the other telecoms there is relatively low growth, T-T pays a good dividend. He owns BCE-T instead. Valuations are on the upper end of the band for both these. You could expect 3-5% increases in share price plus the dividend. Yield 4.6%

BAM vs. BCE A 3% weight in BCE is enough. 50% of their EBITDA comes from landlines, but their credit rating isn't great. Cord cutting is accelerating on the old telephones. He prefers BAM here. Brookfield is a money manager that does very prudent acquisitions, and is a Canadian success story. BCE's dividend growth will wane given the above reasons, unless they expand internationally. Brookfield offers international exposure.

The unlimited data plans will hurt the telcos. Another headwind is the CRTC banning 3-year plans on buying cell phones. BCE is trading at a high 16.3.x PE and growing at only 3.5% EPS. But the good thing about BCE is that they're less wireless than its peers. You will get paid the yield but don't expect growth. Buy this at $55. In fact, telcos did well today when the markets dropped 2-3%. But he prefers Quebecor and Shaw.