Two Telecom Buys For Income & Growth

Article Excerpt

BCE INC. $30.94 (Toronto symbol BCE; SI Rating: Above-Average) is Canada’s largest provider of traditional telephone services, with over 12 million customers in Ontario and Quebec. It also provides Internet access (Sympatico), satellite TV (Bell ExpressVu) and wireless services (Bell Mobility). BCE continues to restructure its operations to focus on its core businesses. This includes an agreement to sell its Telesat Canada communications satellite subsidiary to a private group of investors. BCE also plans to change its name to Bell Canada. The company will probably use the cash to buy back stock, and fund new investments in its wireless and other businesses without taking on new debt. It will also help BCE maintain its $1.32 dividend, which now gives it a current yield of 4.3%. BCE made $0.48 a share from ongoing operations in the three months ended September 30, 2006, down 4% from $0.50 a year earlier. Revenues rose slightly, to $4.42 billion from $4.41 billion. BCE will soon get over half of…

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