BCE Inc. (BCE.TO)

People are thinking maybe there is going to be an increase in interest rates and have driven interest sensitive stocks down 10% or more. This would affect the BCE preferred. People can get terrified and sell these things down.

We can’t go wrong with Canadian telcos. Risks are in the form of new entrants, but there will not be any for the foreseeable future. For income investors this is a good place to be relative to the other two.

It pulled back from when the initial deal was announced. Glentel has approved the deal, but it won’t close until later this spring.

A great company and did a very good job of taking a lot of costs out. Also, their TV and wireless businesses have grown very nicely. Trading at about 17X earnings with a dividend of almost 4.5%. They can continue to grow their dividends. The big issue is that they have a lot of media assets, and you have to see if they all work out in the end.

BCE (BCE-T) or Enbridge (ENB-T) for upside? This one is the less expensive name and Enbridge is the one with the most growth going forward. Enbridge would be her preference.

(A Top Pick Feb 21/14. Up 22.27%.) Was a little surprised the way it ran up the way it did. The current price of around $55 is a good buying range. Likes the business they are in. They are very competitive.

(A Top Pick Jan 29/14. Up 6.8%.) 3.35% bond maturing June 18/19. The bonds are fairly liquid and good quality as well. Have a good following in the retail world.

Got very expensive and was downgraded. He would look for it to get closer to $50 before getting back in. Expects to get there in the next month or two.

Had seen this weakness coming a little, so he bought some more today. It could come back to around the $53 level, or just below the $52 level, which would probably get the buyers very interested. The whole telecom space has been a bit weak. He would like to not see it get below $50.

Management has done an excellent job turning this company around over the last 5-6 years. A giant in the industry. Very solid cash flows, but valuation has gotten up there. Just raised their dividend by 5%. Trades at EBITDA at about 8.5X, so the valuation is rich. In a world where you have very low interest rates and where a lot of investors want to get off resource stocks, they turn to a large Canadian liquid name; as a result this company has enjoyed a good ride. If you don’t own, buy it on a 10% pullback, but if you do own continue to Hold.

All the telecoms seem to be doing well. He is more favourable to Rogers (RCI.B-T) at this time, given the valuation relative to Telus (T-T) and BCE. You can’t go wrong with this company, but at this level he doesn’t see a tremendous amount of upside. They are doing the right things by taking excess cash and buying back stock and increasing the dividend.

(A Top Pick Jan 9/14. Up 36.49%.) Has added to his position and is still buying.

Telecoms in Canada have valuations that are between 6 and 8.5 times cash flow. This one is at the high end of this scale. This at the expensive end of the range. You should trim when you get to this point.

Management has executed phenomenally here. Their valuation is not as outrageous as some other areas like utilities and pipes. He does not see a lot of return left in it. You are better off with his Top Picks.

This has done extremely well. You are getting a great dividend at 4.2%, which is expected to grow probably by 5% a year. Valuations are somewhat stretched in the telco space in general. However, in Canada we are looking at yields that are falling in terms of government yields and interest rates, which only makes names like this much more attractive.