Q: Hello Peter,
I am thinking of increasing my weights to more than 5 percent in fts, bce, and telus. My focus is really income with small capital appreciation looking at 5 year hold. At this point, it seems fts will give me better appreciation but bce and telus have nice dividends. Please comment. thanks
I am thinking of increasing my weights to more than 5 percent in fts, bce, and telus. My focus is really income with small capital appreciation looking at 5 year hold. At this point, it seems fts will give me better appreciation but bce and telus have nice dividends. Please comment. thanks
5i Research Answer:
Weightings need to be personal, but all three stocks offer high yields and 'relative' safety. Telus has been quite weak as investor sentiment has shifted, and its subsidiary TIXT has declined. But its dividend is likely quite secure. We think it is a HOLD but would be cautious on position sizes until things improve. FTS we think is a solid income stock for sure. BCE's strong cash flow, market position, dividend and business diversity make it one of the safer stocks on the market today.