Network upgrades set the stage for gains

Canada’s big telephone companies face strong competition from cable companies and new entrants in the wireless market. However, their traditional phone businesses continue to provide strong cash flows. That’s letting them upgrade their networks, and maintain or increase their dividends.

BCE INC. $35 (Toronto symbol BCE;… Read More

These former trusts offer high payouts

These two former income trusts recently converted to corporations in response to Ottawa’s tax on income-trust distributions. That means they must now pay corporate taxes. Even so, their high payouts (which are now dividends) seem secure.

PENGROWTH ENERGY CORP. $12 (Toronto symbol PGF; Aggressive Growth Portfolio,… Read More

BCE is a top buy

BCE INC. $36.21 (Toronto symbol BCE; Shares outstanding: 755.6 million; Market cap: $27.4 billion; TSI Network Rating: Above Average; Dividend yield: 5.1%; www.bce.ca) is Canada’s largest and most diversified provider of telephone, Internet and wireless services.

BCE’s main telephone subsidiary, Bell Canada, has 6.8 million customers… Read More

Two high-yield buys for income seekers

BELL ALIANT INC. $26.70 (Toronto symbol BA: Shares outstanding: 127.4 million; Market cap: $3.4 billion; TSINetwork Rating: Above Average; Yield: 10.9%; www.aliant.ca) is the new name of Bell Aliant Regional Income Fund after its conversion to a dividend-paying corporation on January 1, 2011.

Bell Aliant has… Read More

…and it could easily afford Bell Aliant

BELL ALIANT REGIONAL COMMUNICATIONS INCOME FUND $26 (Toronto symbol BA.UN, Conservative Growth Portfolio, Utilities sector; Units outstanding: 127.4 million; Market cap: $3.3 billion; Price-to-sales ratio: 1.1; Dividend yield: 11.2%; SI Rating: Above Average) provides telephone services in Atlantic Canada, as well as rural parts of… Read More

BCE is ready to compete

BCE faces strong competition from cable companies and new wireless providers. However, a major cost-cutting drive has freed up cash for new investments in its networks. These savings also give BCE room for dividend increases, share buybacks and other moves that can pay off for… Read More