Updates on two high-yield buys

Article Excerpt

MANITOBA TELECOM SERVICES INC. $28.34 (Toronto symbol MBT; Shares outstanding: 64.7 million; Market cap: $1.8 billion; SI Rating: Average; Dividend yield: 9.2%) gets 52% of its revenue from its MTS division, which mainly sells traditional and wireless telephone services to consumers. The remaining 48% of its revenue comes from its Allstream business-communications division. In the three months ended March 31, 2010, Manitoba Telecom’s revenue fell 5.9%, to $442.0 million from $469.8 million a year earlier. The MTS division’s revenue fell 2.4%, and Allstream’s revenue declined 9.4%. Earnings fell 41.8%, to $21.4 million, or $0.33 a share. A year earlier, the company earned $36.8 million, or $0.57 a share. If you exclude costs related to an ongoing restructuring plan, earnings per share would have fallen 35.2%, to $0.46 from $0.71. This plan saved Manitoba Telecom $17.3 million in the quarter. It aims to increase these savings to $30 million to $40 million a year by the end of 2010. Manitoba Telecom paid $42.0 million…