BCE Inc T.BCE.PR.B

Seems Quite Easy To Understand - NO DIVIDEND CUT 💰

[newcoin]

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

[BlueDawn]

Targets (from annual reports and news releases over the past year) Leverage ratio 3.4-3.6 debt/ebitda (40B/3.5 = 11.4B) Div = 75% of FCF (4B/.75 = 5.3B FCF) Ebitda of 11.4B means opex needs to shrink to 12.5B if Rev is at 24B  FCF of 5.3B means capex needs to shrink to under 4B if ebitda goes up 1.5 B  Again it all comes down to driving down opex and capex. 

[ztransforms173]

- that is ONLY for the 2025 FISCAL YEAR - what HAPPENS in 2026 ? - COMPETITION is HEATING UP & CAPEX is GOING to INCREASE SUBSTANTIALLY - the OLD GRAVY GLORY DAYS are OVER ! z173

[elonmuskrat247]

The key word here is INTENDS to maintain the dividend...intensions are all well and good until Sh## hits the fan. Lets hope not.

[Dogsbreakfast4U]

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

[PabloLafortune]

It makes no common sense at all not to cut the dividend. Say they cut 50%. They would save a whopping $1.75B per year. With some other cost cutting measures, cashflow might actually go positive. Which means the stock would start recovering, they would start investing in customer service (out in the West we are dealing with Rogers acquisition of Shaw it is a mess, truly who wants to deal with

[BlueDawn]

There are 5 major costs operating costs 13B -> this is treding towards 12.4B capital costs 4B -> this is trending to 3.6B dividends 4B interest 2B  Taxes 1B  If there is 24.5B in revenue we cover the expenses with 500m for misc and with the trending it will be 1.5 B less... the problem was when op costs were 14B and capital costs were 5.5 B (they were spending more than they