Well positioned for 2011 tax changes

Article Excerpt

BELL ALIANT REGIONAL COMMUNICATIONS INCOME FUND $26.60 (Toronto symbol BA.UN: SI Rating: Above Average) 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 March 31, 2009, the fund’s earnings rose 9.3%, to $0.59 a unit from $0.54 a year earlier. Cash flow per unit rose 2.5%, to $0.82 from $0.80. The gains came from a 7.9% rise in the number of high-speed Internet subscribers, plus ongoing cost cutting. However, revenue fell 2.9%, to $790 million from $813 million, as lower local and long-distance revenue offset strong demand for high-speed Internet and data services. Bell Aliant now aims to spur growth by expanding the availability and capacity of its high-speed Internet service, which generates higher profit margins than its traditional telephone operations. The fund pays a regular monthly distribution of $0.2417 a unit, which gives it an annual yield of 10.9%. It distributed 88% of its…

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