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BCE Inc T.BCE

Alternate Symbol(s):  BCE | T.BCE.PR.A | BCPPF | T.BCE.PR.B | T.BCE.PR.C | BCEPF | T.BCE.PR.D | T.BCE.PR.E | BCAEF | T.BCE.PR.F | T.BCE.PR.G | T.BCE.PR.H | BECEF | T.BCE.PR.I | T.BCE.PR.J | T.BCE.PR.K | BCEXF | T.BCE.PR.M | T.BCE.PR.N | T.BCE.PR.Q | T.BCE.PR.R | BCEIF | T.BCE.PR.S | T.BCE.PR.T | T.BCE.PR.Y | BCEFF | T.BCE.PR.Z | T.BCE.PR.L

BCE Inc. is a Canada-based communications company. The Company provides wireless and fiber networks. The Company operates through one segment: Bell Communication and Technology Services (Bell CTS). Bell CTS segment provides a range of communication products and services to consumers, businesses and government customers across Canada. Its wireless products and services include mobile data and voice plans and devices and are available nationally. Its wireline products and services comprise data (including Internet access, Internet protocol television (IPTV), cloud-based services and business solutions), voice, and other communication services and products, which are available to its residential, small and medium-sized businesses and large enterprises customers primarily in Ontario, Quebec, the Atlantic provinces and Manitoba. This segment includes its wholesale business, which buys and sells local telephone, long-distance, data, and other services from or to resellers and other carriers.


TSX:BCE - Post by User

Bullboard Posts
Comment by factoryon Dec 05, 2008 2:03am
369 Views
Post# 15629123

RE: RE: RE: RE: Desperate shareholders

RE: RE: RE: RE: Desperate shareholdersThe problem with that scenario is that it is not an investment. It is a dividend trap. The $10B is not staying in the company as capital its going right back out, and them being 20% preferred shareholders, they get $2B right back to them. So after the ~$8B dividend is paid out to us we're back to the regular $1.46/yr dividend the stock price drops back to $22. That one-shot dividend provides no long term shareholder value EXCEPT to OTPP. They're locking in a good chunk of the company and its future dividends, but we only get a one-time benefit. Furthermore there will be pressure on the $1.46/sh dividend because preferreds get paid out at higher rates and before other shareholders. What's left goes to commons. And when its time to sell in the future, the dilution means we would get even less per share and that makes it less valuable on the market and drive the price below even $20 in the near to medium future (<18 months). Except for the temporary dividend, this is a horrible scenario for commons. Raw deal.
Bullboard Posts