Three Portfolio Replacements for BCE

Article Excerpt

BCE Inc. is the subject of a $42.75-a-share takeover offer. We feel BCE shareholders should vote in favour of the offer at a special meeting on September 21, 2007. That way, you’ll get the full amount without paying brokerage fees. We think most investors should hold some phone stocks as part of the Utilities sector component of a well-balanced portfolio. Here are three top telecom buys for growth and income. TELUS CORP. (Toronto symbols T $56 and T.A $54; Conservative Growth Portfolio, Utilities sector; Shares outstanding: 331.7 million; Market cap: $18.5 billion; SI Rating: Above average) provides local and long distance telephone service in British Columbia, Alberta and parts of Quebec, and wireless service across Canada. A big part of the company’s success in the past few years is its wireless operations, which now account for 40% of its total revenue. Telus prefers to focus on long-term customers, which cuts the need for expensive promotions such as free phones. That has helped keep its wireless profit…