Telus Corp (T.TO)

Likes this. Now that Verizon (VZ-N) is seemingly out of the picture, this gives the Canadian incumbent telcos room to move upwards. Telecoms are usually interest-rate sensitive so you have to be careful which ones you own. This one has one of the higher dividend growth profiles of all the incumbents.

Nobody came out looking good in the last couple of months on this blown up speculation that Verizon (VZ-N) might be coming to Canada. Canadian telcos got hammered unnecessarily so he expects them to come back. A decent industry to be in. Prefers Bell Canada (BCE-T) because it has a smaller footprint in wireless than the others and has a good broadcasting part, which is economically sensitive and is a good place to be.

The outlook is uncertain. He is not sure what is going to happen and doesn’t think anybody else does either. Of the 3 telcos, he likes this one the best. Would like to see the issues revolving around Verizon (VZ-N) resolved first.

Bell Canada (BCE-T), Telus (T-T) or Rogers (RCI.B-T)? Verizon (VZ-N) possible incursion into Canada is causing a negative effect on all the telcos. The ones most exposed to this would be Telus and Rogers because of the wireless exposure. These will probably be dead money for a while. If you own, you could even think of selling half of your position. Dividend yields are going to be safe.

If the 10 year treasury note went up to 3.5%, how would this impact this company’s shares? If rates go up fast, this will hurt all interest sensitive stocks to some extent. This company has a reasonable yield, which should cushion the downside. Businesses are still growing so the dividend would likely increase.

BCE is his heaviest weighting. Telus was battered in recent sell off. Would be a good point to get in. Don’t sell, but if buying, get into Bell.

A wonderful company. Have the most shareholder friendly policies but you are fighting a headwind in the sector.

Telco landscape is incredibly confusing. Government doesn’t know what it is doing in that it wants more competition but doesn’t want to open up the forum. Telus is “best in class” in this industry. Got hit with the interest-rate movement. He feels it is more compelling now that it’s come off 10%-15%. It is still a very, very consistent free cash flow yield industry regardless.

Telcos were dropping well before the worry about Verizon (VZ-N) coming into Canada. Although he owns all 3 telcos, he would feel that Rogers (RCI.B-T) and Bell (BCE-T) are much more attractive. He thinks what is missing from this company are the other assets. This one is primarily wireless. They are trying to push into TV and this has put them at a disadvantage.

Not been doing well over last little well but made a good base. Looks interesting. Just made a death cross but he does not believe in it.

The pullback is related to 2 things. Interest rates rising and Verizon (VZ-N). Has the highest exposure to wireless out of all the telecoms. If Verizon comes in and are allowed to buy up spectrum and the user network it could get worse. If the government puts the rules on a level playing field, it could hold in here. Has good dividend growth at about 10%.

Doesn’t have a lot of exposure to Telcos. He is tempted to step in. Our market could look attractive to Verizon. But he thinks we will see some evolution in the industry. Prefers T-T today to BCE.

If you are looking 3 to 5 years out, this would be his favourite but thinks this area is going to be very tough competitively.

With Verizon (VZ-N) talking about coming into Canada, which telco would be the safest bet, Bell Canada (BCE-T) Telus (T-T) or Rogers (RCI.B-T)? Interestingly enough, Sprint in the US just announced that they are offering “guaranteed for life” unlimited data so there is a bit of competition in the US. BCE is probably the safest with Rogers having the most exposure. It is difficult to say what is going to happen with Verizon.

Has been a tremendous long-term performer having pretty well doubled over the last 4-5 years. Very well run. Since Bernanke talked about tapering on May 21st and Verizon (VZ-N) confirmed that it was thinking about coming in to Canada, the stock has weakened very sharply. Believes the dividend growth target of 10% is maintainable. If Verizon comes in, the landscape will be more competitive. Feels it is at a pretty reasonable valuation now. We will get a big bump if Verizon does not come into Canada. Very much a speculative Buy.