BELL ALIANT INC. $28.65 - Toronto symbol BA

BELL ALIANT INC. $28.65 (Toronto symbol BA: Shares outstanding: 227.8 million; Market cap: $6.5 billion; TSINetwork Rating: Above Average; Yield: 6.6%; www.aliant.ca) sells telephone and Internet services to 2.8 million customers in Atlantic Canada, as well as rural parts of Ontario and Quebec. The company also sells wireless services through an alliance with BCE, which owns 43.8% of Bell Aliant.

The company faces strong competition from cable providers. In addition, many of its phone customers are switching to wireless devices. However, Bell Aliant’s wireless agreement with BCE and recent upgrades to its high-speed Internet network are helping it hold on to clients and attract new ones.

Bell Aliant earned $0.75 a share in the three months ended September 30, 2011. A year earlier, it earned just $0.21 a share.

The company pays quarterly dividends of $0.475 a share (for an annualized yield of 6.6%).

Bell Aliant is a buy.

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