Topic: How To Invest

Dividend Advisor Hotline – Friday, January 6, 2017

Article Excerpt

BCE INC., $58.56, Toronto symbol BCE, is Canada’s largest traditional telephone service provider, with 6.4 million customers in Ontario, Quebec and the Atlantic provinces. It also has 3.5 million high-speed Internet users and 2.7 million TV subscribers. In addition, the company sells wireless services to 8.4 million users across Canada, and owns TV and radio stations. BCE last raised its quarterly dividend by 5.0%, with the April 2016 payment. Investors now receive $0.6825 a share for an annual rate of $2.73; the stock yields a high 4.7%. In May 2016, the company agreed to buy MANITOBA TELECOM SERVICES INC., $38.24, Toronto symbol MBT. It has 1.3 million telephone and wireless customers in Manitoba. BCE has offered $40.00 a share for the business. Under the terms of the deal, Manitoba Telecom shareholders can choose either $40 in cash or 0.6756 shares of BCE for every MBT share they hold. However, the company has capped the total amount of cash it will pay. As a result,…