Stable income trusts with growth ahead

Article Excerpt

BELL ALIANT REGIONAL COMMUNICATIONS INCOME FUND $28.28 (Toronto symbol BA.UN: Units outstanding: 127.3 million; Market cap: $3.6 billion; SI Rating: Above Average; Dividend yield: 10.3%) has over 3.1 million telephone customers in Atlantic Canada and rural parts of Ontario and Quebec. BCE owns 44.1% of Bell Aliant. In the three months ended September 30, 2009, the fund’s earnings rose 6.8%, to $0.63 a unit from $0.59 a year earlier. Cash flow per unit rose 15.2%, to $0.91 from $0.79. The gains came from a 7.1% rise in the number of high-speed Internet subscribers, plus ongoing cost cutting. However, revenue fell 2.6%, to $786 million from $807 million, as lower local and long-distance revenue offset strong demand for high-speed Internet and data services. The fund pays a regular monthly distribution of $0.2417 a unit, which gives it an annual yield of 10.3%. It distributed 80% of its cash flow to its unitholders in the latest quarter. Under Ottawa’s new tax rules, Bell Aliant will…

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