These two major telecommunication providers continue to spend heavily on improving their networks. That spending has increased their debt levels. However, better networks are helping each attract new customers. The extra cash flow will also help them both pay down debt and keep raising dividends.

BCE INC. $54 (Toronto symbol BCE; Income-Growth Portfolio, Utilities sector; Shares outstanding: 901.1 million; Market cap: $48.7 billion; Dividend yield: 5.6%; Dividend Sustainability Rating: Highest; www.bce.ca) is Canada’s largest traditional telephone service provider, with 6.3 million customers in Ontario, Quebec, Manitoba and the Atlantic provinces. It also has 3.8 million high-speed Internet users and 2.8 million TV subscribers. In addition, the company sells wireless services to 9.2 million users across Canada, and owns TV and radio stations.

Starting with the April 2018 payment, BCE raised its quarterly dividend by 5.2%, to $0.755 a share from $0.7175. The new annual rate of $3.02 yields a high 5.6%.

In March 2017, BCE completed its acquisition of Manitoba Telecom Services. That utility has 1.3 million telephone and wireless customers in the province. BCE paid $3.9 billion. That price included Manitoba Telecom’s debt of $972 million.

Thanks partly to this major purchase, BCE’s revenue in the fourth quarter of 2017 rose 4.5%, to $5.96 billion from $5.70 billion a year earlier.

The company’s heavy investments in its wireless and Internet networks are also helping to spur its revenue. BCE signed 175,204 wireless customers to long-term contracts (net of cancellations) in the latest quarter. That’s a gain of 55.9% over the year-earlier quarter. The company also added 32,484 customers for its Fibe TV business and 27,040 customers for its high-speed Internet service.

If you exclude costs related to the Manitoba Telecom purchase and other unusual items, BCE’s earnings in the quarter rose 2.5%, to $684 million from $667 million a year earlier. But due to more shares outstanding, per-share profits for the company were unchanged at $0.76.

As of December 31, 2017, BCE’s debt was $18.2 billion. That’s equal to 37% of its market cap.

BCE is a buy.

TELUS CORP. $45 (Toronto symbol T; Income-Growth Dividend Payer Portfolio, Utilities sector; Shares outstanding: 595.1 million; Market cap: $26.8 billion; Dividend yield: 4.5%; Dividend Sustainability Rating: Highest; www.telus.com) is Canada’s third-largest wireless carrier, after Rogers Communications (No. 1) and BCE (No. 2), with 8.9 million subscribers. In addition, its wireline business serves 1.3 million traditional phone customers in B.C., Alberta and eastern Quebec. That operation also has 1.7 million Internet users and 1.1 million TV subscribers.

In January 2018, Telus increases its quarterly dividend 2.5%, to $0.505 a share from $0.4925. The new annual rate for $2.02 yields a high 4.5%.

The company earned $328 million, or $0.55 a share, in the three months ended December 31, 2017. That’s up 3.8% from $316 million, or $0.53 a share, a year earlier.

Telus had to cut its wireless prices in response to strong competition over the holiday shopping season. Those promotions, along with clients it acquired as part of BCE’s purchase of Manitoba Telecom, helped add 121,000 wireless customers under long-term contracts (net of cancellations) in the quarter. That’s up 39.1% from a year earlier. The company also signed up 21,000 new high-speed Internet subscribers and 14,000 TV customers.

As a result, revenue in the quarter improved 4.9%, to $3.47 billion from $3.31 billion.

The company finished 2017 with debt of $12.3 billion. That’s a manageable 46% of its market cap.

Telus is a buy.