Q: Hi Peter and 5i Team,

An article in the Globe & Mail (May 27) was titled:

“Telus to invest more than $70-billion in Canada over next five years to expand infrastructure”

Given that its payout ratio is now approximately 100%, and if interest rates should rise while there’s a slowdown in the economy, is this a prudent decision for Telus to take? Having recently sold BCE at a loss, and still owning T, are my concerns justified?

In the Communications Services Sector, we also have a small position in QBR.B, which is doing reasonably well so far. Its debt leverage is the lowest among its peers, which I believe to be an important metric at this time.

Thanks in advance for your insight.

Q: If I would like to choose between these two in communication sector for income and long term, which one would you recommend? Thank you.

Q: BCE has given up much of its post-dividend-cut rally - not to say that the cut was a bad idea, and maybe there's a support level lurking somewhere here. At the same time, I find myself wondering just what BCE's value proposition could be, now, to make it more attractive than T (or, for that matter, BNS or PPL, which offer similar yields)? Put another way: if investors have no reason to buy BCE other than income, and if declining interest rates are the only meaningful catalyst for share price appreciation, then, post-cut, isn't it at least as likely that it will continue to decline?