BCE Inc T.BCE

Dividend cut

[SIGG1]

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.

[1condor]

Heard this exact same talk when the bank shares were down 20 percent last Fall. I bought the banks hand over fist even as these "threats" of divvy cuts were popping up daily. Its your call but all I can say folks is buy or add BCE and T on weakness and sit back as this weakness too will pass.

[Fuergo]

You're absolutely right, it's the right thing to do.

[jx7000]

You're absolutely right about buying in on weakness on something like BCE, T, etc., during a short attack. I've been through a short attack with Home Cap. Group (HCG) about nine years ago.  It wasn't easy watching my shares go down from the mid C$20s (was paying a 5.5% div and then cut altogether) down to about C$5 +/-  as I recall.  I lost sleep for sure. The problem

[HoneyBadger77]

Here's the link to a post I posted in December when BCE was getting beat down at that time and everyone was worried about a dividend cut.  I bought in around $52 and sold at $56 then because the Technicals were indicating BCE was overbought.  That turned out to be a good call because I captured the dividend and also made $4 a share.  Got sidetracked with other stocks and good