Buy for Internet Growth

Article Excerpt

BELL ALIANT REGIONAL COMMUNICATIONS INCOME FUND $29.25 (Toronto symbol BA.UN: SI Rating: Above average) is the main provider of telephone services in Atlantic Canada. It also serves rural parts of Ontario and Quebec. Bell Aliant is beginning to realize the benefits of its plan to expand the availability and capacity of its high-speed Internet service. Internet subscribers grew 17.1% in the fourth quarter of 2007. This extra capacity has also helped Bell Aliant attract more business customers. Consequently, Bell Aliant’s earnings per share in 2007 rose 18.8%, to $2.53 a share from $2.13 in 2006. Overall revenue grew just 3.0%, to $3.4 billion from $3.3 billion, due to lower local and long distance revenue. Bell Aliant has raised its monthly distributions 2.9%, to $0.2417 a unit from $0.235. The new annual rate of $2.90 yields 9.9%. Bell Aliant is a buy. buy…