Topic: How To Invest

Pat: I own equal shares of BCE and Bell Aliant. Do they complement each other? I was thinking of selling BCE and buying more Bell Aliant for increased yield. Your opinion please. Thanks.

Article Excerpt

BCE, $24.99, symbol BCE on Toronto (Shares outstanding: 767.8 million; Market cap: $19.2 billion), has over 7.5 million telephone and Internet customers in Ontario and Quebec. It also has 6.5 million wireless subscribers across Canada. BCE continues to lose traditional phone customers, but these losses are slowing. Meanwhile, BCE’s cellphone business is growing strongly. BCE shares yield 6.2%. Bell Aliant Regional Communications Income Fund, $26.50, symbol BA.UN on Toronto (Units outstanding: 127.2 million; Market cap: $3.4 billion), has 3.1 million traditional phone customers in Atlantic Canada and rural parts of Ontario and Quebec. As part of the deal that created the trust in 2006, Bell Aliant transferred most of its wireless business to BCE, which owns 44% of Bell Aliant. Like BCE, Bell Aliant is losing traditional phone customers, but strong demand for high-speed Internet service is helping it offset those losses. Bell Aliant yields 10.9%. Under Ottawa’s new tax rules for income trusts, Bell Aliant will have to start paying income…

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