BCE Inc. (BCE.TO)

Doesn’t own any telecommunications at this time. Because of 1) regulatory uncertainties that are coming down the pike, 2) increasing intense competition and 3) some are reaching the saturation point. He would stay away at this time.

(Top Pick Jun 26/13, 23.39%) The stock plunged with threat of Verizon coming in but it didn’t happen. Still likes it and likes the opportunity of smart phone penetration beyond 70%. Still sees them as a utility. One of his core holdings, but he only buys it on negative headlines.

Traded yesterday at $48.57 and his model price is $36.97, a 24% negative differential. He feels investors are looking more at the 5% yield. This price and $50 is the maximum you are going to get.

(A Top Pick Aug 12/13. Up 22.23%.) Expect there will be another dividend increase. The main reason he holds it is because of the stability and the dividend.

BA-T is an okay deal for BCE. He does not know what they are getting. It is not very exciting for him in terms of BCE. He is not sure where the organic growth is coming from. Not sure what you get from the company going forward.

Is $31 a fair price to compensate the dividend difference between this and Bell Aliant (BA-T)? He thinks the Bell Alliant people should be happy. There wasn’t much growth there. The difficulty for them was staying current. He thinks the move by Bell was the right thing.

(Market Call Minute.) A Hold at best. Management has done a fantastic job, but the yield is not going to get any better and earnings growth is slowing down a little. Doesn’t think there is much valuation upside.

Well up there, but the stock has a terrific yield in a yield starved world. Trading at over 2.5X its Book Value and 3.5X is all that he would ever expect from it. His Fair Market Value would give him about another 20% upside. A good stock to hold.

Just announced a privatization deal with Bell Alliant (BA-T). Thinks this is good that they are taking some of their assets and consolidating them. He owns this mainly for its dividend play. Wireless is the way to go, and the growth engine for things. If you are a Bell Alliant shareholder, he would recommend taking the cash unless there are some capital gains complications.

Media is huge going forward. We will probably not see the growth over the next few years so it is about the yield. It is a fine holding to accumulate when it pulls back.

(A Top Pick July 15/13. Up 16.94%.) If you are an income investor, this is a conservative investment that pays good and rising dividends. It gives you the dividend tax credit. The stock should rise with the market over time.

Do you think entrants in the wireless spectrum auction will be a threat? It is a threat, but in the past it hasn’t tended to hit them too hard. More competition would benefit the sector. There are a lot of other factors such as the cable side with government regulation coming in and trying to break that a little. Dividend is hugely attractive in this low rate environment. If you own, you could continue to Hold, but just be aware that in the cell phone space and the cable space there could be some negative shocks to come.

(A Top Pick June 27/13. Up 18.81%.) You are not going to see the upside that you saw over the last little while. Pays a 5.1% dividend. Trading at the high end of its range, so wouldn’t expect to see huge things coming out. You are getting a 6%-8% return.

Have raised the dividend on a regular basis and the dividend is secure. After hitting $51 it has been trading back, and if it gets back under $47 the yield is quite nice, and there could be more dividend increases. Good place to park your money.

Stock vs. Stock: BCE-T vs. VZ-N. They are two different stocks. BCE gives you a fantastic dividend close to 5% and decent cash flow. Telcos in general are getting up there in terms of valuations. VZ-N should provide more growth and less dividend than BCE. It depends what you are trying to accomplish.