Q: Hi 5i - what do you think the 10 year prospects are for BCE and Telus? Would you start or add to a position at current prices?
Thanks, Neil
Thanks, Neil
5i Research Answer:
We would be OK slowing buying right now, with a view to income and less growth. Sentiment is very negative, creating long term opportunity. We would not expect miracles here, and investors need to be prepared for a possible BCE dividend cut. But, with potentially lower interest rates down the road, and each company focusing on reducing their cost structure, it is not all negative. Valuations are attractive, and they are still regulated businesses with a more-or-less protected market in Canada.