
TSE:BCE
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.