BCE Inc T.BCE

Teal Linde - BNN comment

[Possibleidiot01]

COMMENT

BCE Inc.(BCE-T)

04/11/2024

 

Today, they announced they're buying a US fibre network company and will stop growing their dividend until end-2025. Shares are sliding

The sell-off is overdone. They already pay 8%, so do they need to grow that dividend? Pausing the growth is prudent. Also, divesting from major league sports and investing in fibre makes sense (most of that sports money will pay for the fibre company). No, BCE is not headed for disaster.

telephone utilities

 

N/A

Unknown if he owns

[Gabriel]

Precisely my point. It's a definitely better producing asset in terms of earnings and growth considering the saturated Canadian market. Institutions will get it. Only the mediocre analysts are/will criticize this move.

[Quintessential1]

Don't be logical now.  When asked where is the future growth going to come from BCE put their money where their mouths are and showed them.  Yeah the market doesn't like it now but they didn't like the ENB acquisition either.  Adding cash flow right in their core business was the right thing to do.  Now, like ENB they just have to mange the debt and the business and

[rixpix]

It's not what they did with the funds. It's what they said they'd do with it that is the shocker. Mgmt has to be held accountable for their words and actions. They can't say one thing one day, and only a few weeks later do the exact opposite. Their credibility is shattered and credibility for any publicly traded stock is a good part of their evaluation. 

[Quintessential1]

The transaction is expected to close in mid-2025. BCE currently intends to direct proceeds of this sale towards reducing debt levels and to support its ongoing transformation from telco to techco with a focus on core growth drivers. You had to read the whole news release. You can try to hold them accountable for whatever but I doubt you have the juice.   The market will come around