BCE INC. $53 - Toronto symbol BCE

BCE INC. $53 (Toronto symbol BCE; Conservative Growth and Income Portfolios, Utilities sector; Shares outstanding: 840.5 million; Market cap: $44.5 billion; Price-to-sales ratio: 2.1; Dividend yield: 4.9%; TSINetwork Rating: Above Average; www.bce.ca) has signed a new deal with Sun Life Financial (Toronto symbol SLF) that will cut some of the risk in its Bell Canada employees’ pension plan.

Retired employees currently receive a monthly payment for the rest of their lives. However, many of these pensioners are living longer than expected, which is increasing BCE’s pension obligations.

Under this new deal, BCE will pay monthly premiums to Sun Life, which will then make monthly payments into the plan for the lifetime of existing pensioners.

BCE is a buy.

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