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.
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: Hello Team,
Could you give me a short commentary on both and which would you prefer for total return over the next couple of years. I already own Telus and wonder if there would be too much overlap to own both.
Thank You,
Barry
Could you give me a short commentary on both and which would you prefer for total return over the next couple of years. I already own Telus and wonder if there would be too much overlap to own both.
Thank You,
Barry
-
Bank of Nova Scotia (The) (BNS)
-
BCE Inc. (BCE)
-
TELUS Corporation (T)
-
Pembina Pipeline Corporation (PPL)
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?