BCE Inc. (BCE.TO)

He used to own it and finds it interesting now. It's had a big pullback. It's a little levered, but it enjoys an oligopoly in Canada. Don't expect the rate of growth in the past, but it's worth looking at now.

Defensive play, so doesn’t suffer same seasonal fluctuations. Can be a good place to hide in the summer. Best time to own is December 6 to March 13, even though that’s risk-on for the market. Pullback starting to base. Support at $53 would be a good risk-reward point, and also provides a tight stop. Moving averages are rolling over. Seeing lower highs and lower lows.

A fine CEO, but in a tough business with pressure on margins and growing competition. Pays a good yield. But he sees more growth at Rogers and maybe Shaw. Canadian telcos are moving into a slow-growth phase, but with the dividend they remain a safe play.

For long term capital stability, this is a good entry point. Great dividend yield. Multiple on the lower side. He prefers Rogers Communications (B) (RCI.B-T). (Analysts’ price target is $59.61)

He'd add to a position. Telecoms have sharply improved performance and volumes vs. TSX in recent weeks after a sideways consolidation in past weeks. BCE lags its peers but has a strong dividend. Definitely seeing improvement in
BCE.

Buy more now for defense and income? Yes. He’s added to it in this weakness. It’s at a great level. Ahead of the game in 5G investment and well positioned going forward. 7.5% free cash flow yield. Yield of 5.5%

(A top pick June 6/18, up 1%) A very attractive yield on what normally is a very stable stock. Concerns of demands on wireless are overblown. Has been beaten up somewhat because of higher rates. He sees it improving over the next year. Still sees it as a buy. Yield is about 5.5%

He sold it half a year ago to raise more cash and get more cash flow outside Canada. He likes their business model of moving into data management, which will eventually pay out but not now. Look elsewhere for now.

If you are holding this for the dividend it is probably safe to continue to do so. They will continue to raise prices in internet and they should be able to protect earnings that way. If it trades back to $60 he would consider selling, in the meantime he would continue to hold.

Largest telecom in Canada. Very safe investment, unless Canadian economy goes down tubes, which he doesn’t see. Buys it for the dividend, doesn’t expect a lot of capital gain. Good at increasing dividend. If gets to 60s, could take some profits. A good buy right here. Great cash flow. Can’t see dividend being cut, you can’t get this from fixed income, and you get the dividend tax credit. Yield is 5.7%.

Today’s paradigm is that growth is good and value is bad. Big dividend payers like BCE are out of favour and telecoms are down significantly globally. However, telecom companies tend to grow with the economy. If Canadian GDP grows 10%, the telecom market will grow 10% along with it. BCE provides a fairly safe income stream and at its current level, he would add more.

Likes it. Core position. Free cash flow yield is about 8%, whereas Telus and Rogers are around 5-6%. Has room to increase dividend. Bell spending millions to get fibre to the home. This is a transitional move that will get market share from the cable companies. Good balance sheet, great management. Trades at lower end of EV to EBITDA. Has underperformed other Telco’s for last 6 months. Best growth profile and best dividend profile.

Is it a good long-term hold? The payout ratio is 85% and creeping up which it is not that great for dividend growth. He doesn’t see a lot of growth in this name in terms of earnings. Maybe a little on cash flows. Valuation is reasonable. It wouldn’t be the preferred name in the space.

He has taken a 10% weighting in this in the portfolio. He likes the technical basing and is expecting good news with the next earnings report in early August. Very good risk-reward and a good defensive holding. Yield 5.4%. (Analysts’ price target is $59.22)

Company that operates in a semi-monopoly business. Not a growth business. They are growing in the high-speed internet side. As long as nothing comes from the technology side to disrupt the whole space, the company is safe for an income portfolio. It will be fine given the 5% plus yield.