RE:Seems Quite Easy To Understand - NO DIVIDEND CUT 💰newcoin wrote: BCE's common share dividend
BCE intends to maintain its annual common share dividend at the current level of $3.99 per share during the financial year ending December 31, 2025. In the context of the strategic Acquisition of Ziply Fiber, BCE's focus is on long-term value creation for shareholders and BCE intends to pause dividend growth until BCE's dividend payout and net debt leverage ratios are tracking towards our target policy ranges, subject to review annually by the BCE Board of Directors.
from BCE News Release
The key word here is "intends". They were also intending to grow the dividend every year until things changed. The fact they said a couple of weeks ago they "intend" to maintain the dividend at 3.99 per common share next year means nothing. Since that statement the stock has gone from 44 to 38 and will be 35 or below after the xdiv date in December. The market is clearly telling us that the dividend will be cut next year. Management/Board will come up with a nice justification for that just like when they said It won't grow for the first time in 17 years. It won't be the first company cutting it's so calked "safe" dividend because of poor management decisions (just think Altagas, Algonquin). They need to bring Cope back and remove the current CEO. Once the Board decides to cut the dividend next year he will "gracefully" retire and be thanked for his "loyal and dedicated service" anyway.