Verizon Communications (VZ)

Stability and good cash flow. They are reinventing themselves. Over 70 percent of business is wireless. They have a big Cap–X budget every year. He thinks we will see some decent growth from them. 4.6% dividend.

A US telecom carrier. This would be similar to BCE (BCE-T) and the telecom space in Canada. If you are looking for yield and slowly growing dividends, this is a more defensive place to be. A good name in the telecom space for yield, but defensive. Dividend yield of 4.5%.

The largest cell phone provider in the US. A very, very solid company. Trading at a discount to Canadian telcos. Over time it will do well. Good solid investment.

It does not have a high enough dividend growth for him, but the telecom space has been a big winner. You can buy it at a decent multiple. A solid holding for income.

(Top Pick Sep 19/15, Up 23.59%) He still likes it. It is at his model price. The model price will be up in a year. It has a good dividend.

Telecommunication and utility companies are not prime examples of dividend growers. The projected three-year dividend growth of this is about 3%, pretty low relative to other companies. The dividend is attractive at 4.3%. A good company but you have to be careful of interest rates moving higher and the prospects of them moving higher. You could consider Telus (T-T) which has publicly said they are going to increase their dividend by almost double digit growth over the next several years.

This is coming off a little right now as interest rates trend back up a little higher.

Unlike AT&T (T-N), it took a big risk by putting fibre in the ground. They bought AOL and part of Yahoo. Had a joint venture with Vodafone on the wireless side and bought them out. Thinks they’re trying to create a 3^rd stream of revenue from advertising and tie it into their wireless business, and maybe their line business. Trading at about 17X earnings and feels the dividend is safe. You have to see if they can execute on Yahoo. Thinks you can own it and it will do well, but these are the risk factors. Dividend yield of 4.2%.

One of the relatively cheaper telecommunication companies. In this macro environment, he is not keen on being overweight in telecommunications. Most of these are trading at very high multiples. This is one you can hang on to and collect a reasonable amount of income, and not have to pay for the multiple.

(A Top Pick June 16/15. Up 11.49%.) He bought this because it was morphing from a traditional telco wire line focused business into a wireless business that will become more than the telco. Pays a 4.4% dividend yield. Still a Buy.

Verizon (VZ-N) or AT&T (T-N)? Both are good companies and you are getting a nice yield. You probably can’t lose with either of these.

Likes this. It tends to trade in the $50 range. Not sure you buy it for growth prospects. You buy it as a stable reasonably valued telecom with a good yield of 4.5%. Scores in the top 20% for price momentum. Holds up well in bad markets. Valuation is not bad, especially for a telco. Trading at 6X EV to EBITDA and at 12X PE.

A great company. The Telco sector is a tough place to be because there is almost no growth. You will get some increase in dividend.

Large wireless telco with about 70% being wireless This is often described as a safe place in the market, because of the high dividend yield. When you look under the hood, you are seeing a company that is really innovating. Recently sold their wire line business in California, Texas and Florida. They are basically taking a telco and becoming a content delivery company delivering data, voice and streaming video. They produce a ton of cash. Dividend yield of 4.4%.

The CEO made it clear they are on a cost cutting rampage and it should add to the bottom line. He prefers Canadian names because the barrier to entry is higher and there is less competition. In the US he prefers AT&T.