Telus Corp (T.TO)

A great company, but is in a sector that has a lot of difficulties passing through fee increases, and he wonders if it can grow out of it. He owns nothing in the telecom area.

(A Top Pick Jan 28/16. Up 14.7%.) Had felt the selloff last year was too dramatic. People had worried about what was going to happen in the Western economy. You are going to get an 8%-10% dividend yield over the next few years. Still reasonably valued.

If you own this for the dividend, it is just fine, as they will continue to grow the dividend. The CapX continues to go down, so they will be able to maintain it. If you own for capital appreciation, you are facing some challenges because of increasing interest rates, and potentially more aggressive competition from Shaw (SJR.B-T). A well-managed company.

(A Top Pick Jan 26/16. Up 14.9%.) Had chosen this as a low risk company with a decent dividend. It has paid off without being spectacular. He still likes the company.

5-10 year hold? This is a little bit richer than what he would like it to be. The over all long-term hypothesis is fine, so you could own this pretty much through any cycle. Dividend yield of 4.6%.

(Market Call Minute.) Along with the other telcos, this has been hit recently with the upturn in interest rates. He still likes the company. 9% dividend increase this year. Looks pretty solid for the long-term, but wait to see how this negative trade on interest rates plays out.

It is probably time to sell as all the telcos are pretty expensive. The Cap-X requirements leave them with little or no free cash flow. Telcos are not going to outperform. Interest rates will be a headwind while the tail wind from the last 7 years has gone.

Telecoms? She likes Telus (T-T) and BCE (BCE-T) equally. They are both incredibly well-managed.

(Top Pick Nov 23/15, Up 9.16%) It did well with along with the telcom group. He thought it was cheaper than the others He would hold on to it.

This has heavy competition from BCE and Rogers, which he prefers. He prefers Shaw (SJR.B-T). Telus is a good company and pays a good dividend, and there is probably some upside in it. Canadians get more and more content through these channels now, so there could be more value in these stocks.

(For a newborn?) Telcos have done very well, and is something you should be having in your RESP’s. Also, the government will give you a 20% match on the 1^st $4000 (?).

(A Top Pick Sept 24/15. Up 5.53%.) The nice thing about the 3 phone companies is that there is sort of one for everybody. If you want stodgy and steady, you go for Bell (BCE-T), a mixture of sports and phone you go for Rogers (RCI.B-T), and this one always struck him as having the best growth profile of the big 3. Trading at 16X forward earnings with a 4% dividend yield.

Fortis (FTS-T) versus Enbridge (ENB-T) versus Telus (T-T)? He has just come out with a new portfolio which has 13 infrastructure oriented stocks. All 3 of these are in that portfolio. The major reason is because of the predictability of dividends long-term and excellent management. He would call this a globally competitive infrastructure company. This and BCE (BCE-T) (#2) have been top-performing incumbent telcos globally since 2000. Mainly because of their strong CapX on telecom infrastructure. This company is going to be spending about $15 billion over the next 5 years. They’ve spent over $22 billion since 2000. BCE will be spending over $20 billion. Thinks the dividends will grow considerably.

A very well-run company. Had a bit of a stutter with their Alberta exposure, but the results have not been that bad. Big capital expenditure program and capital intensity is increasing as they invest in fibre to the home, and should pay big dividends over the next 5-10 years.

It has been unable to make a significant higher high. The chart indicates it is trading in a range with support at around $38. One of those stocks that has a decent yield, and is kind of a hiding place for investors. Thinks valuation might be getting expensive. Wait until it is $39-$40 before you enter.