BCE Inc. (BCE.TO)

All Canadian telco stocks have moved in tandem, all facing the same headwinds. Higher interest rates mean less money to reinvest in the business or pay out in dividends. Higher expenses for 5G rollout. Very competitive space. Yield is 7.25%.

He owns Telus instead.

He recently switched from BCE to Telus, a subtle change. Telus has a bit better growth dynamics with healthcare and TIXT. 

BCE dividend is north of 7%, while Rogers is not that high. BCE has media assets. Tends to increase dividend every year, so it's a bit more geared to income. For the more conservative and income-focused investor.

They both share the sports teams in Toronto.

Rogers tends to be more focused on the cellular side. With Shaw acquisition, you should see more growth in the West. Cell ads will come. More competition. More growthy and volatile. If you made him pick, he'd choose this one now, as the Shaw acquisition will help grow the company.

Investors have been shifting into bonds and out of this and other dividend stocks. No change in BCE fundamentals. Pays a 7.5% PE at 15x PE, so good to own now and hold.

All telcos have been beaten up. Aren't in seasonality now. BCE will probably do okay. Pays a safe 7.5% dividend. They've already invested in 5G, so not in a risky phase. If interest rates flatline, this should be okay as you get paid that dividend.

He sees 35% downside. Earnings just barely cover their dividend. GICs pay higher returns.

Telcos in Canada are in a unique spot. Quebecor has really upped the competitive pressure, positive for the consumer but negative for BCE and Telus. Stay away, and see how things shake out. Prefers RCI.B, with its ability to shave costs from Shaw, or QBR.B.

Telus, BCE, and Rogers are all competing for market share. Telus and BCE are in a really good position in that race. People are loathe to give up cell phones. Yield of 7.5%.

Share price a good place to buy. Excellent long term investment. ~8% dividend yield very attractive. Assets are very good. Owns shares in the company. 

As with all telecoms, falls into the category of mean reversion. Traditionally, a 4.5% dividend yield. Effectively, somewhat of a proxy for money market. Big tech players eventually need to start paying for bandwidth. He's happy to hold for income.

Continued higher rates killed all these bond proxies. You still get the dividend. He's not selling. Eventually it will be higher, and he'll have done OK.

He doubts that any big Canadian dividend stock will. Also, BCE tends to cut loose its businesses. BCE will not cut. It pays 7.5%.

Good stalwart. Yield is over 6%, growing steadily at mid-single-digit pace. Dominant player in a needs, not wants, business. Sector is an oligopoly, well regulated. Peak of capex is behind it. Quite profitable. Strong investment-grade credit.

He expects interest rates in Canada to keep rising, as high as 15%. BCE is tied closely to interest rates. He targets $35.81, or 32.5% lower than now. Their earnings can't match the dividend they pay out. Basically, you're losing equity (book value) as you collect the 7.24% dividend. Or you can buy a GIC of 5.5%.