BCE INC. $29 (Toronto symbol BCE; Conservative Growth Portfolio, Utilities sector; Shares outstanding: 767.2 million; Market cap: $22.2 billion; Price-to-sales ratio: 1.3; Dividend yield: 6.0%; SI Rating: Above Average) provides telephone and Internet services in Ontario and Quebec. It also sells wireless and satellite TV services across Canada.

BCE is starting to see the benefits of a restructuring plan that it began in July 2008. Under the plan, the company cut jobs, relocated employees and sold extra real estate. These moves should save BCE $400 million annually by the end of this year.

In 2009, BCE’s earnings rose 6.5%, to $1.9 billion from $1.8 billion in the prior year. Per-share earnings rose 11.1%, to $2.50 from $2.25, on fewer shares outstanding. These figures exclude restructuring costs and other unusual items. Revenue rose 0.4%, to $17.74 billion from $17.66 billion.

BCE continues to lose residential phone customers to cable and wireless providers. The company now has 6.9 million home telephone subscribers, down 6.1% from the previous year. However, some of these customers are switching to the company’s own wireless service. BCE had 6.8 million wireless subscribers at the end of 2009, up 5.2% from the previous year.

BCE’s satellite TV service is also doing a good job of attracting new customers: this business now has 1.9 million TV subscribers, up 5.2% from 2008.

BCE aims to spur long-term growth by making its Internet service faster and available to more customers. Faster Internet service will also help the company launch a new Internet-based TV service in Toronto and Montreal later this year.

The company expects to earn between $2.65 and $2.75 a share in 2010. The stock trades at just 10.7 times the midpoint of that range.

BCE is a buy.