
TSE:BCE
The PE is around 17 with a payout ratio of 80-90% -- very high for a telco. They are in a good space in Canada and the stock may be impacted by the general move towards bonds. He is fearful of increasing regulation in Canada. The dividend is safe, he feels. Yield 5.8%. (Analysts’ price target is $59)
A long-term holding for him.. It has increased its dividends a lot over history, though the recent share price is lagging its peers. Dividend increases are going down. A few acquisitions like Manitbo Tel, could wring out some synergies, but there are no new purchaes to support future dividend growth.
BCE vs. ATT. Stock performance has been similar over last year. Comes down to the wireless space. For ATT, it’s the only thing they do, whereas with BCE it’s only one thing they do. In Canada, there’s more runway for wireless growth. He’d go with BCE, good dividend and cash flow. It’s a little early to own high dividend names, but once interest rates start falling, these names will look interesting.
She holds this for some of her income investors, and she likes the yield. It has a consistent record of increasing dividends. The stock price has pulled back with rising interest rates as have other telecom companies. The dividend is safe, and she expects the business to grow by 4 to 6% per year. Yield 6%.
He sold it at $62 a year ago based on chart patterns (it hit $62 three times before). BCE is reaching support in the low-$50s like it is now. He hopes it breaks $60 when he'll sell it again. (5.7% dividend, Analysts' price target: $59.42)