A Top Choice for Income-seekers

Article Excerpt

BELL ALIANT REGIONAL COMMUNICATIONS INCOME FUND $34 (Toronto symbol BA.UN; Conservative Growth Portfolio, Utilities sector; SI Rating: Above average) provides telephone services to over 3.4 million customers in rural areas of Ontario and Quebec, and all of Atlantic Canada. This business accounts for roughly two-thirds of its revenue. It also provides computer services to businesses, and high-speed Internet access. Shareholders of Aliant Inc. received one trust unit for each common share held, and now own about 26.5% of the new trust. BCE shareholders received 0.0725 of a unit for each share held, and own roughly 28.5%. BCE owns the remaining 45%, and operates the new trust. Bell Aliant paid an initial cash distribution of $0.3996 a unit, to cover the last three weeks of July and all of August. It plans to pay a regular monthly distribution of $0.2283 a unit; the annual rate of $2.74 yields 8.1%. The trust should be able to gradually increase its distributions, once it begins to realize…

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