01:47 PM EDT, 09/08/2023 (MT Newswires) -- National Bank analyst Adam Shine notes that questions were raised last week about the quality/sustainability of BCE's dividend, adding that, among "the list of things across Canadian telecom that we might worry about in any given year, the safety of BCE's dividend is often last."
Shine "fully anticipates" another 5% hike to be announced with Q4 2023 reporting. He does not see the potential of a freeze or cut anytime soon.
He also sees BCE's leverage dropping from 3.5x at Q2 2023 to 3.0x in 2026 ahead of expected spending on 3800 MHz & millimetre wave spectrum that could add 20-25 bps. "We'd prefer to see more delevering and this could be accomplished with more aggressive restructuring in the future, but BCE is a relatively steady ship with fewer surprises than peers."
BCE is rated Outperform, with a $60 target.
Price: 55.19, Change: -0.10, Percent Change: -0.18