Dividend cut Then there’s the dividend
So, where does that leave the dividend? BCE stock currently offers a high dividend yield at 8.66% as of writing. This comes after a recent increase of 3.1% during earnings. Yet, with profitability concerns, investors would be right to be concerned about whether the company can afford to keep up with dividend increases.
In fact, it’s been argued that perhaps a cut should happen! That way, the company could use that cash flow to work towards profitability and, furthermore, invest in its high-margin profitable areas. Though, of course, a dividend cut would likely lead to shares dropping even further.