These telcos give you high, sustainable yields

Article Excerpt

BCE and Telus are high-quality firms with businesses well-prepared to withstand the COVID-19 slowdown. Longer term, the recent launch of their new ultrafast 5G wireless networks will provide strong growth prospects and boost their cash flow to pay for dividend increases. BCE INC. $57.05, is a buy. Through your shares (Toronto symbol BCE; Shares o/s: 904.3 million; Market cap: $50.4 billion; TSINetwork Rating: Above Average; Divd. yield: 5.8%) you tap Canada’s largest traditional telephone service provider, with 2.6 million residential customers in Ontario, Quebec, Manitoba and the Atlantic provinces. It also has 3.6 million high-speed Internet users and 2.7 million TV subscribers. BCE also sells wireless services to 10.0 million users across Canada and owns TV and radio stations. The COVID-19 lockdowns and the absence of live sporting events severely hurt advertising revenue at BCE’s media properties. Travel restrictions also cut the amount of roaming fees its wireless business collected, while the closure of its retail outlets slowed BCE’s ability to sign up new customers. As a..