Acquisitions will enhance their dividends

Article Excerpt

These two leading telcos are enhancing their operations with acquisitions. While that adds risk, we’re confident the expansion will add to overall profits as planned—and let them keep raising your dividends. BCE INC. $61 is your #1 Income Buy for 2022. The company (Toronto symbol BCE; Conservative Growth and Income Portfolios, Utilities sector; Shares outstanding: 911.8 million; Market cap: $55.6 billion; Price-to-sales ratio: 2.4; Dividend yield: 6.0%; TSINetwork Rating: Above Average; has 2.21 million residential telephone customers in Ontario, Quebec, Manitoba and the Atlantic provinces. BCE also has 3.98 million high-speed Internet users and 2.72 million TV subscribers (satellite and fibre-optic). In addition, it sells wireless services to 11.90 million users across Canada and owns TV and radio stations. The company has now agreed to acquire Ottawa-based Distributel Communications Limited for an undisclosed amount. This privately held firm provides Internet access services in Ontario, Quebec, British Columbia and Alberta. The purchase will bolster BCE’s plan to expand its high-speed Internet and TV services to more…

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