BCE Inc.

The Successful Investor is highlighting three stocks as your top picks for new buying in 2022. One is from the newsletter’s Conservative portfolio, the second from its Aggressive portfolio and the third from its Income portfolio.


All three stocks performed well in 2020 and 2021 despite COVID-19 disruptions....

BCE and Telus are high-quality telecoms, and their businesses were well-prepared to withstand COVID-19 slowdowns. Longer term, the launch of their new ultrafast 5G wireless networks provide strong growth prospects and should boost cash flow to pay for dividend increases.


TELUS, $29.76, is a buy. The stock (Toronto symbol T; Shares o/s: 1.4 billion; Market cap: $40.7 billion; TSINetwork Rating: Above Average; Dividend yield: 4.4%; www.telus.com) gives you a stake in a wireless business with 11.2 million subscribers....

The traditional telecommunications service providers, such as Telus and BCE, are trading at substantially lower valuations than other “infrastructure” type companies. This is not only true for Canadian companies, but also for U.S. and other similar companies in Europe.


Infrastructure type companies such as telecommunications, pipelines, utilities, and railroad companies have delivered comparable financial results over the past five years—so this provides scant reason for the significant valuation differences....

5G wireless networks are up to 100 times faster than the current systems. That extra speed will not only help BCE and Telus attract new customers, it will also spur more businesses to use automobiles and other objects connected to the Web (known as the “Internet of Things”)....

BCE and Telus are high-quality telecoms, and their businesses were well-prepared to withstand COVID-19 slowdowns. Longer term, recent launches of their new ultrafast 5G wireless networks provide strong growth prospects and should boost cash flow to pay for dividend increases....

Canada’s top telecoms recently bought new wireless spectrum (wireless frequencies) under Ottawa’s latest auction. These investments will help them expand the rollout of 5G service to more areas. The faster speeds will also attract new customers, and let these companies keep raising their dividends.


BCE INC....

BCE INC. $65.95 is a buy. The company (Toronto symbol BCE; Shares o/s: 905.7 million; Market cap: $59.6 billion; TSINetwork Rating: Above Average; Dividend yield: 5.3%) recently agreed to buy new wireless spectrum from the Canadian government for $2.07 billion....

Canada’s telecom regulator recently reversed a prior decision to cut the rates that large telecoms charge smaller Internet service providers to access their high-speed networks. The decision will give BCE more cash to build out its networks and set the stage for its future growth....

BCE INC., $61.94 is a buy. The company (Toronto symbol BCE; Shares o/s: 904.6 million; Market cap: $55.7 billion; TSINetwork Rating: Above Average; Dividend yield: 5.7%) now benefits from a move by the Canadian Radio-television and Telecommunications Commission (CRTC) to reverse a rate cut for smaller Internet service providers looking to access the high-speed networks of BCE and other large telecoms.


BCE will use the resulting bump in its cash flow to speed up its fibre-optic network and ultrafast 5G wireless infrastructure projects.


The company will now earmark between $1.5 billion and $1.7 billion to those projects over the next two years....

BCE and Telus are high-quality firms with businesses that were well-prepared to withstand the COVID-19 slowdown. Longer term, the recent launch of their new ultrafast 5G wireless networks provides strong growth prospects and should boost their cash flow to pay for dividend increases.


TELUS, $27.51 (Toronto symbol T; Shares outstanding: 1.4 billion; Market cap: $37.2 billion; TSINetwork Rating: Above Average; Dividend yield: 4.6%; www.telus.com) gives you a stake in a wireless business that has 10.8 million subscribers....