Gordon Pape is a leading authority on Canada-based stocks; here, the editor of Internet Wealth Builder assesses two leading telecommunications stocks from north of the border.

BCE Inc. (BCE) is Canada's largest communications company, providing a comprehensive suite of broadband, mobile, landline, and cable communication services to residential and business customers through Bell Canada and Bell Aliant.

Bell Media is company's multimedia arm, with assets in television, radio, and digital media. Television assets include the CTV television network and many of the country's most-watched specialty channels.

BCE reported third-quarter financial results that were in line with analysts' estimates, while new wireless additions beat forecasts. Operating revenue was up by 3.2% year-over-year, to just under $5.9 billion. Adjusted net earnings were $861 million ($0.96 per share) compared to $824 million ($0.91 per share) the year before.

Of special interest was the record growth of 178,000 in wireless net additions of 178,000, including a 15.5% increase in postpaid net additions to 135,000. Wireless has become the lifeblood of telecommunications companies and this type of growth for a mature firm like BCE is impressive.

BCE also added 266,000 broadband wireless, Internet, and IPTV customers, up 41.5%. (IPTV is the delivery of TV content over the Internet as opposed to cable, satellite, etc.)

Almost unnoticed, BCE has also been improving the bottom line by downsizing its management team. The company completed a net reduction in its management workforce of 4%, or approximately 700 positions, in the The current quarterly dividend is $0.755 ($3.02 per year) to yield 5.3%. I expect a dividend increase early in 2019. The stock has rebounded off its low and the dividend is still attractive. Buy.

Telus Corp. (TU) claims to be Canada's fastest-growing telecommunications company, with $13.8 billion of annual revenue and 13.1 million subscriber connections.

The company provides a wide range of communications products and services, including wireless, data, Internet protocol (IP), voice, television, entertainment and video, and is Canada's largest healthcare IT provider.

Telus reported very strong third-quarter results, which helped to boost the stock. Operating revenue was $3.8 billion, up almost 11% from $3.4 billion in the same period of 2017. Adjusted net income was $445 million ($0.74 per share) compared to $417 million ($0.70 a share) in the same period last year. Free cash flow was ahead 41% to $303 million.

The company reported 145,000 net wireless additions — not as many as BCE but impressive given the fact that Telus has a smaller customer base. Wireless network revenue increased by 2.2% to $1.5 billion, reflecting continued customer growth and a larger proportion of customers selecting plans with larger data limits.

Telus also increased wireline customers by 42,000 at a time when some competitors are reporting losses in that area.

The company announced a 3.8% increase in the quarterly dividend to $0.545 per share ($2.18 per year). It's the second increase announced this year and the sixteenth since 2011. The company has a target of annual increases in the 7-10% range through 2019. The stock yields 4.6% at the new rate. Buy for income and long-term growth.

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