BCE Inc. (BCE.TO)

A defensive name, paying a fantastic dividend. He is going to hold it for the summer in the equity portfolio and keep going in the income portfolio. There is a flight to safety in the summer. (Analysts’ target: $62.00).

In the short to intermediate term, this company is fine. The dividend yield is approaching 4.7%, pretty close to 5%, and that dividend is secure. If buying this as a conservative safety element, and part of an income profile, this is fine. He questions the longer-term business models of the telecoms. The Internet is changing a lot of things.

(A Top Pick March 28/17. Up 4%.) The best positioned telco out there. They have the balance sheet and the free cash flow yield. The only ones that are the most aggressive with fibre to the homes. In this low interest rate environment, you are still getting a 5% yield.

A name you want to own when you want to collect a very nice dividend. Very secure 4.7% dividend yield. Good growth rate with the dividend going forward. Shares are trading at about 9.5X enterprise value over EBITDA, which is kind of fair at this time. Regulatory environment for telcos has been challenging and can become more so.

For new clients, he would buy a half position on day one. Isn’t looking for big appreciation on this. It pays a good yield and they are increasing their dividend by about 5% a year. There is a lot of wireless growth, which is good for them.

With rates as low as they are, he is generally positive on the income, however, cautious on the sector because of media content. The real work is around the land lines. Over half their EBITDA is generated from land lines, and he would like to make sure that cord cutting does not accelerate. A large part of the driver on this company is on the income side of things. Sold half his position a long while ago. A good generator of income.

He loves the dividend. The last time he recommended this was when it was $58. It ran up to $63 and is now backing off. If it gets down to $60, this is a slam-dunk. They seem to have absorbed Manitoba Tel without too much trouble. If you want a nice dividend, why go any further than this? 4.76% dividend yield.

A good name for an income investor. It has an attractive yield. Recently closed on the Manitoba Tel acquisition, so there should be some synergies. She has a target price of $63-$64 which will give you an 8% capital appreciation, plus the yield of 4.73%. The dividend will continue to be increased over time. If there is a pullback, the stock should hold in quite well.

A core holding for him, but wouldn’t buy it today. Has had a really, really nice move. It’s been a great portfolio investment, but it is now getting a little toppy. The RSI (relative strength indicator) shows a sense of enthusiasm. As it ran up to the mid-$60s, enthusiasm got quite high. He’d like to see that wane before he took another position. Great yield.

(A Top Pick Feb 11/16. Up 14%.) Buying this is buying a business that is established. Multi-revenue streams. Pays a great dividend, and combined with share price appreciation of 3%-4% a year will give you a 6%-7%.

Just reported earnings which were extremely well received. This is just within a whisker of its all-time highs. He has to give them a lot of credit on their customer service.

He would personally not buy this. His clients have some, but it is a very small part. The competition is heating up with the various channels and media that is coming on. The demand is exploding, but it is also diversifying.

Not cheap at around 17X, which is ahead of its 5-year average. 57% of revenues come from wire line which is not good, because of increasing competition from cable. Their wireless numbers are probably going to be pretty good at about 30% of their revenues. He sees growth of about 4% this year over last year. They will be boosting their dividend every year by about 5%. A name that you just Hold, and sell some Calls on it.

A great income name and has been a great dividend stock. 4.7% dividend yield, and expects that will get increases of about 5% over the next few years. That is likely to equal what the earnings growth is going to be. They’ve had some good penetration on the wireless business. Has a great deal with Telus (T-T) which allows them to lower the costs of their infrastructure. Trading at a high valuation of over 18X earnings.

The media sector has been doing well recently, and telcos have had a bit of a bounce over the last couple of months. These are less economically sensitive companies that people have gone to hide in while pulling back on more economically sensitive companies. From a sector perspective, there are better places to be. He would prefer to be in media such as Comcast (CMCSA-Q) or CBS (CBS-N). Dividend yield of 4.7%.