BCE Inc. (BCE.TO)

Stock vs. Stock. BCE-T vs. T-T. BCE-T has a fair market value of $61. It if hits that again it will set back. T-T is the same. It is in a rising phase right now but is not the exciting value for you to make it half your portfolio.

Likes this as a core position. Thinks that in 10 years it is going to be very different because of their exciting content. Chart shows a nice upward channel. If it broke down through the $52 level, we would probably see $46 come in really quickly. Long-term it is a good space to be in.

This is one of those names where you are getting quality and an established business. That is the good side. The bad side is you are not going to see double-digit share price appreciation for the most part. Over the last 52 weeks, the stock is up 7.8%, which is more than what he would generally expect from a name like this.

A good solid telecom company. We continue to use more and more mobile communication services in our everyday lives. This is his favourite out of the 3 Canadian ones. The best dividend payer. They will continue to do well.

Royal Bank (RY-T) or BCE (BCE-T)? In terms of one or the other, it is hard when it is in such a divisive space. This telecom has been bulking up on the content side. In his view it is the best one to own on the wireless side. Both companies pay good dividends, and both are best of breed. If you had to pick one over the other, it would be this for the short term.

A good 5% dividend. Prefers BPF.UN-T.

Sold all of her telco holdings about a year ago because of regulatory concerns. Thinks some of those concerns have been alleviated somewhat. The reason you tend to own telecoms is because they have very strong cash flows and provide 4%-5% dividends. There are other parts of the market she would prefer to invest in for income purposes.

Had good solid numbers in the quarter. You are not buying this for growth; you are buying it for yield plus a little bit of growth. 4.5%-5% yield plus 3%-4% growth and the multiple is now down to probably a base, which gives you an 8%-9% return.

Telecoms do not have any distinguishable seasonal trends. Basically the higher yielding equities have less correlation with the market. From a seasonal point of view, you could actually invest in these in the summer time. The chart is showing a bit of an intermediate-term weakness. We are still a week or 2 away from seasonal weakness from broad equity markets, so there is still time for investors to kick into this thing and really chase the yield. For now, stay away from this and get into it towards May or even into the summertime.

He prefers this to Rogers (RCI.B-T) because Rogers has a much bigger footprint in wireless, and they have been losing market share and subscribers.

Are the yields of 4.5%-5.5% sustainable on BCE (BCE-T), Verizon (VZ-N) and Vodafone (VOD-Q)? Most of the dividends are sustainable and he thinks they can afford to grow their dividends. BCE trades at a very high multiple at almost 16X earnings. Why people are worried about BCE is that it is not only a telephone company, but also a communications company. Verizon and Vodafone gives you much more of a pure play.

This is a very competitive space in Canada. Although there is price deflation occurring in this space we are spending more, which is a great combination for this company. What is surprising to him is how good their product really is. They are really doing well on their wire line growth. Great dividend yield.

He likes this. The stock has come down to the 100 day moving average, which makes it attractive from a buying perspective. The RSI has dropped-down to the oversold level which makes it very attractive. Nice dividend of 4.76% and thinks it is going to continue to grow. He also likes and owns Telus (T-T).

Recently sold it because he thought it was overly expensive. A good, safe yield. There are some CRTC issues but he does not think they are meaningful to the stock price. $50ish is a good re-entry point.

The media side will be affected by what’s happening with the CRTC but it is too early to gauge how much it will hurt them. He believes it will be only slightly negative for BCE-T.