Telcos give you high yields plus 5G growth

Article Excerpt

Big telecommunication providers, like BCE and AT&T, remain great picks for income-seeking investors—their regulated businesses generate plenty of cash flow for dividends even when interest rates rise. The launch of new 5G wireless services also sets them up for new growth. BCE INC. $65 is a buy. The company (Toronto symbol BCE; Income-Growth Portfolio, Utilities sector; Shares o/s: 905.7 million; Market cap: $58.9 billion; Dividend yield: 5.4%; Dividend Sustainability Rating: Highest; www.bce.ca) is Canada’s largest traditional telephone service provider. It also provides wireless and high-speed Internet services, in addition to owning TV and radio stations. BCE has raised its dividend rate each year since 2008. The last increase came in April 2021 when the company paid a quarterly dividend of $0.875 a share, up 5.1% from $0.8325. The new annual rate of $3.50 yields a high 5.4%. The company is in strong position to keep raising your dividend. BCE continues to see strong demand for new mobile phones and high-speed Internet services, particularly as the pandemic continues…