Two Trust Buys for Income & Growth

Article Excerpt

BELL ALIANT REGIONAL COMMUNICATIONS INCOME FUND $28.28 (Toronto symbol BA.UN: SI Rating: Above average) is the main provider of telephone services in Atlantic Canada. It also serves rural parts of Ontario and Quebec. In the three months ended March 31, 2008, Bell Aliant’s earnings fell 25.9%, to $0.40 a unit from $0.54 a year earlier. That’s mainly due to additional depreciation expenses after an acquisition, plus a writedown of goodwill. However, cash flow per unit rose 11.0%, to $0.91 from $0.82. Revenue grew 1.6%, to $865.4 million from $851.4 million. Bell Aliant pays a regular monthly distribution of $0.2417 a unit, which gives it an annual yield of 10.3%. It distributed 79% of its cash flow to its investors in the latest quarter. Bell Aliant now aims to spur growth by expanding the availability and capacity of its high-speed Internet service. High-speed Internet subcribers rose 14.5% in the latest quarter. Bell Aliant is 45% owned by BCE. If the BCE takeover succeeds, BCE’s new…