bce

Low interest rates continue to spur incomeseeking investors to buy high-yielding stocks, like these three telecoms. All three should keep benefiting as more people upgrade their wireless plans and mobile phones. New services, like Internet-based TV, are also fuelling their growth. But not all are buys right now. BCE INC. $56 (Toronto symbol BCE; Conservative Growth and Income Portfolios, Utilities sector; Shares outstanding: 840.3 million; Market cap: $47.1 billion; Price-to-sales ratio: 2.2; Dividend yield: 4.6%; TSINetwork Rating: Above Average; www.bce.ca) is Canada’s largest telephone provider, with 5.0 million customers in Ontario and Quebec. It also has 2.3 million high-speed Internet users and 2.4 million TV subscribers. This business supplies 46% of BCE’s revenue. The company also sells wireless services (29% of revenue) to 8.1 million customers across Canada, and its Bell Media segment (13%) owns CTV Television, specialty channels and radio stations....

CAE INC., $15.58, Toronto symbol CAE, earned $52.1 million, or $0.20 a share, in its fiscal 2015 third quarter, which ended December 31, 2014. That beat the consensus forecast of $0.19. The latest earnings are also up 14.5% from $45.5 million, or $0.17 a share, a year earlier. Overall revenue rose 11.0%, to $559.1 million from $503.9 million, also beating the consensus forecast of $554.4 million. Revenue from sales of flight simulators and pilot-training services to commercial airlines (57% of the total) rose 14.2%. That’s mainly due to higher simulator sales and the positive impact of the lower Canadian dollar (overseas customers supply 90% of CAE’s revenue)....

BCE INC. $54.40 (Toronto symbol BCE; Shares outstanding: 839.6 million; Market cap: $44.9 billion; TSINetwork Rating: Above Average; Dividend yield: 4.5%; www.bce.ca) recently agreed to buy Glentel Inc. (Toronto symbol GLN) for $670 million.

Glentel sells mobile phones and subscription plans through 494 Canadian stores, mainly under the Wireless Wave banner. Glentel also has 735 U.S. outlets and 147 in Australia and the Philippines.

However, rival wireless carrier Rogers Communications (Toronto symbol RCI.B) legally challenged the takeover. Rogers claims that its existing deal with Glentel gives it the right to block any change in control.

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ISHARES CANADIAN SELECT DIVIDEND INDEX ETF $24.27 (Toronto symbol XDV; buy or sell through brokers; ca.ishares.com) holds 30 of the highestyielding Canadian stocks. Its selections are based on dividend growth, yield and payout ratio. The weight of any one stock is limited to 10% of the ETF’s assets. The fund’s MER is 0.55%, and it yields 3.9%.

The fund’s top holdings are CIBC, 7.3%; TD Bank, 6.8%, National Bank, 6.7%; Bank of Montreal, 6.1%; Royal Bank, 5.5%; BCE, 4.8%; Ag Growth International, 4.6%; Bank of Nova Scotia, 4.5%; Bonterra Energy, 4.2%; and Laurentian Bank of Canada, 3.9%.

The ETF holds 55.2% of its assets in financial stocks. The top Canadian finance stocks have sound prospects. However, if you invest in this ETF, be sure to adjust the rest of your portfolio so it won’t be overly concentrated in the financial sector.

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In next week’s Successful Investor Hotline, we’ll reveal our #1 stock pick for 2015. Don’t miss this unique opportunity to profit. BCE INC., $54.35, Toronto symbol BCE, recently agreed to buy Glentel Inc. (Toronto symbol GLN), which sells mobile phones and subscription plans through 494 Canadian stores, mainly under the Wireless Wave banner. Glentel also has 735 U.S. outlets and 147 in Australia and the Philippines. The company will pay $594 million (50% cash and 50% in BCE common stock) for Glentel’s outstanding shares. If you include Glentel’s debt, the entire deal is worth $670 million. To put that in context, BCE earned $648 million, or $0.83 a share, in the three months ended September 30, 2014....

Exchange traded funds (ETFs) are set up to mirror the performance of a stock market index or sub-index. They hold a more or less fixed selection of securities that represent the holdings that go into the calculation of the index or sub-index. ETFs trade on stock exchanges, just like stocks. That’s different from mutual funds, which you can only buy at the end of the day at a price that reflects the fund’s value at the close of trading. Prices of ETFs are quoted in newspaper stock tables and online. You pay brokerage commissions to buy and sell them, but their low management fees give them a cost advantage over most mutual funds....

BCE INC. $54.40 (Toronto symbol BCE; Shares outstanding: 839.6 million; Market cap: $44.9 billion; TSINetwork Rating: Above Average; Dividend yield: 4.5%; www.bce.ca) recently agreed to buy Glentel Inc. (Toronto symbol GLN) for $670 million. Glentel sells mobile phones and subscription plans through 494 Canadian stores, mainly under the Wireless Wave banner. Glentel also has 735 U.S. outlets and 147 in Australia and the Philippines. However, rival wireless carrier Rogers Communications (Toronto symbol RCI.B) legally challenged the takeover. Rogers claims that its existing deal with Glentel gives it the right to block any change in control....

BCE INC. $52 (Toronto symbol BCE; Conservative Growth and Income Portfolios, Utilities sector; Shares outstanding: 839.6 million; Market cap: $43.7 billion; Price-to-sales ratio: 2.1; Dividend yield: 4.8%; TSINetwork Rating: Above Average; www.bce.ca) is buying Glentel Inc. (Toronto symbol GLN), which sells mobile phones and subscription plans through 494 Canadian stores, mainly under under the Wireless Wave banner. Glentel also has 735 U.S. outlets and 147 in Australia and the Philippines.

The company will pay $594 million (50% cash and 50% in BCE common shares) for Glentel’s outstanding shares. If you include Glentel’s debt, the entire deal is worth $670 million. BCE expects to complete it in the first quarter of 2015.

The Glentel stores will keep selling subscription plans from rival wireless carriers. However, BCE feels the new outlets will help it win more customers, particularly as Ottawa now limits mobile contract terms to two years or less.

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BCE INC. $52 (Toronto symbol BCE; Conservative Growth and Income Portfolios, Utilities sector; Shares outstanding: 839.6 million; Market cap: $43.7 billion; Price-to-sales ratio: 2.1; Dividend yield: 4.8%; TSINetwork Rating: Above Average; www.bce.ca) is buying Glentel Inc. (Toronto symbol GLN), which sells mobile phones and subscription plans through 494 Canadian stores, mainly under under the Wireless Wave banner. Glentel also has 735 U.S. outlets and 147 in Australia and the Philippines. The company will pay $594 million (50% cash and 50% in BCE common shares) for Glentel’s outstanding shares. If you include Glentel’s debt, the entire deal is worth $670 million. BCE expects to complete it in the first quarter of 2015. The Glentel stores will keep selling subscription plans from rival wireless carriers. However, BCE feels the new outlets will help it win more customers, particularly as Ottawa now limits mobile contract terms to two years or less....

BELL ALIANT INC. $27 (Toronto symbol BA, Conservative Growth Portfolio, Utilities sector; Shares outstanding: 227.8 million; Market cap: $6.2 billion; Price-to-sales ratio: 2.2; Dividend yield: 7.0%; TSINetwork Rating: Average; www.bellaliant.ca) ells telephone and Internet services to 2.5 million customers in Atlantic Canada, as well as rural parts of Ontario and Quebec. It also sells wireless services through an alliance with BCE, which owns 45% of Bell Aliant.

The company continues to replace its copper-wire cables with fibre optic lines. This lets it sell more high-speed Internet and digital TV subscriptions, and offset declining sales of its regular phone services, which still supply 60% of its revenue.

Bell Aliant expects to spend $550 million to $600 million on network upgrades in 2012, compared to $573 million in 2011. Its fibre optic systems now reach 621,000 homes. The company plans to increase that to 650,000 by the end of 2012.

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