# Manitoba Telecom Service (MBT.TO)



## mikescool (Mar 17, 2013)

Anyone own this stock? been watching it for a little bit. seems like a solid dividend stock.

super low beta: 0.16
5.22 div yield @ today's losing price
PE around 12.

not sure if the dividend is eligible or not for the reduced tax rate, where do you guys find this kind of info?


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## doctrine (Sep 30, 2011)

You can find it on their investors relations webpage. Investors relations webpages are the best source of stock information.

http://www.mts.ca/mts/about+mts+allstream/investors

Poking around under Shareholder Information, I find some information on their dividend history.

http://www.mts.ca/mts/about+mts+allstream/investors/shareholder+information/dividend+payment+history

_Since January 1, 2006 and unless stated otherwise all dividends paid are designated as "eligible" dividends under the Income Tax Act ( Canada ) and any corresponding provincial legislation. Under this legislation, individuals resident in Canada may be entitled to enhanced dividend tax credits which reduce income tax otherwise payable._

In the past, Telus and BCE in my opinion have been better choice, although if the price of both of them continues to go up, then a smaller company like MBT becomes more attractive in the sector with a superior valuation. (MBT=12 vs 17 for Telus). Unfortunately, they don't have a dividend increase since they cut it in 2010.


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## pwm (Jan 19, 2012)

*I've owned MBT since day one.*

I've owned MBT from before it was a listed stock on the TSX. As a Manitoba resident I was able to purchase "installment receipts" when they privatized Manitoba Telephone. The receipts were converted to stock when they started trading in 1998. My ACB is $17.25 so I've done very well over the years. I will continue to hold my shares for the dividend going forward. I'm not anticipating much growth, but it's a solid dividend payer and a core holding for me.


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## Dibs (May 26, 2011)

Here is a stock analysis dated March 2013 on spbrunner's blog

http://www.spbrunner.blogspot.ca/2013/03/manitoba-telecom-services-inc.html
http://www.spbrunner.blogspot.ca/2013/03/manitoba-telecom-services-inc-2.html


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## youngdad3 (Jun 29, 2013)

*Manitoba Telecom services (MBT.TO)*

Stock is down ~8% after Ottawa rejected the sale of their Allstream division to an Egyptian group. P/E is now at 14.8, lower than Telus (17), inline with BCE (14.0) and higher than Rogers (12.4).
Yield is tempting at 5.7% but the dividend has been cut in 2010 from 65¢/share to 42.5¢.

Any thoughs?


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## pwm (Jan 19, 2012)

I was tempted this morning to add to my holdings, but decided I didn't want any more MBT. It's not a growth stock, but I believe the dividend is secure and the current yield is tempting.


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## My Own Advisor (Sep 24, 2012)

You own all telcos pwm? Curious. I own 4, lowest holding is RCI.B.


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## pwm (Jan 19, 2012)

I have BCE, MBT and BA.


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## My Own Advisor (Sep 24, 2012)

Thanks. Thought you might own Telus as well....

I have no position in BA. Own BCE. MBT remains good for yield, for now.


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## gibor365 (Apr 1, 2011)

My Own Advisor said:


> You own all telcos pwm? Curious. I own 4, lowest holding is RCI.B.


I own just 2: BCE and RCI.B , also T:NYSE


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## praire_guy (Sep 8, 2011)

pwm said:


> I've owned MBT from before it was a listed stock on the TSX. As a Manitoba resident I was able to purchase "installment receipts" when they privatized Manitoba Telephone. The receipts were converted to stock when they started trading in 1998. My ACB is $17.25 so I've done very well over the years. I will continue to hold my shares for the dividend going forward. I'm not anticipating much growth, but it's a solid dividend payer and a core holding for me.


They cut the dividend in 2010. Doesn't sound very solid to me. Nonetheless, their services are crap. Spotty internet, and beyond pathetic customer service. I'm surprised they are not bankrupt. I've had nothing but problems with them, and as they say on dragons den... "I'm out".


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## My Own Advisor (Sep 24, 2012)

I've never owned MBT because I've read for years their dividend is/always is in jeopardy. They keep paying though. I don't have any experience with them as a customer but prairie_guy, that doesn't sound good.


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## Butters (Apr 20, 2012)

They are a good company... there isn't a TON of competition. They are doing well.

They offer Phones [Landline + Cell(best coverage in MB)] (Telus, Rogers, Koodoo, Fido, Virgin)
And TV (Shaw, Satellite)
Internet (Shaw)

They have the bundle package, most families have it.
A quote from a mailman, "it's bill day, every house"

Their services will be around for a long time.
That being said, a company like Bell or something might move in and take them over?


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## james4beach (Nov 15, 2012)

Just adding a comment regarding my experience with MTS/Manitoba Telecom... mind you, I wouldn't choose stocks based on information like this.

Regarding the service offered within Manitoba, I've been very impressed both by the phone and DSL internet service. The DSL used by my family is way more reliable (from MTS) than anything I've had from Rogers or Bell in Ontario. Like, worlds apart in uptime and reliability.

The cell phone coverage in Manitoba, by MTS, is also far better than any competitors. I've used both Rogers and Bell/Virgin phones in Manitoba and the experience has been much worse than what I see from my friends with MTS phones. The MTS phones get reception everywhere.

These are just observations within Manitoba


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## praire_guy (Sep 8, 2011)

Yes, I concede they have the best coverage in manitoba for cell service. BUT the competition is getting better and better. 

I conclude that a company who cuts a dividend is not doing well. (Compared to rising dividends in same industry)

But ultimately I, and many others in winnipeg are fed up with mts and their horrible internet, and even worse customer service, and have switched to shaw. This, IMO does not give me confidence in mts as an investment.


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## Mall Guy (Sep 14, 2011)

Owned it in the past, got caught on the dividend cut, hung on clause it still wasn't so bad a yield, and sold when I was back above water. Two things . . . I have a landline and wonder why on a daily basis and didn't their deal to sell Allstream tank ? I still own BA, and wonder why . . . other than that dividend . . .


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## Eder (Feb 16, 2011)

I have owned them in the the past...I sold when they cut their dividend (its rule#3 on the sticky note I read before I log onto Investors Edge). I saw the drop and thought to buy some...but just read their financials then read Telus financials...I changed my mind and bet you do as well.


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## heyjude (May 16, 2009)

james4beach said:


> Just adding a comment regarding my experience with MTS/Manitoba Telecom... mind you, I wouldn't choose stocks based on information like this.
> 
> Regarding the service offered within Manitoba, I've been very impressed both by the phone and DSL internet service. The DSL used by my family is way more reliable (from MTS) than anything I've had from Rogers or Bell in Ontario. Like, worlds apart in uptime and reliability.
> 
> ...


I used to live in Manitoba, and now I live in another province. I can attest to the fact that MTS was far superior in the consistency of its internet service. 

I have also owned MTS stock for several years. The dividend was decreased some time ago and the price is down, but I have not sold because I expect them to continue to do OK within their region. 

What intrigues me is the "national security issue" that led to their Egyptian deal being rejected by the Feds. Is this Political...or political? Is influence being peddled by competitors?


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## james4beach (Nov 15, 2012)

Well wasn't the government saying that Allstream runs major internet backbones across the country? To me it sounds plausible when they say Allstream needs to be kept domestically owned, for national security.

If a foreign owner takes control of our internet backbones, they could read out any unencrypted information being transmitted. This could expose plenty of sensitive government data as well.


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## Pano (Oct 16, 2012)

*Mbt*

What are thoughts on Manitoba Telecom Services? I'm thinking about getting in and wondering if I should wait to see if the price will continue to decline. 
I'm considering it as a long term investment. Yield is almost 6 percent.


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## doctrine (Sep 30, 2011)

Revenues down, earnings down, issued $200M of common shares a few weeks ago at $28.10 a share to pay pension obligations. Dividend payout ratio exceeded 100% last quarter. I do not think they are a good buy. The national telecoms are better investments, in my opinion, although they aren't cheap at the moment.


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