BCE Inc T.BCE.PR.K

Teal Linde - BNN - BUY

[Possibleidiot01]

BUY

BCE Inc.(BCE-T)

17/06/2024

 

BCE vs. Telus for dividend income sustainability?

Favours Telus for the long run. More consistent performer for dividend growth. Share price over 10 years has been steadier. (He's based in Western Canada, so he may have a bit of a home-team bias ;)

But if he had to buy one today, he'd go with BCE. Trading at a 10-year low, appears oversold. Yield is about 8.5%, and looks secure -- reducing capex, and it could introduce a DRIP program (which would give it a healthier payout ratio).

telephone utilities

 

$44.895

Unknown if he owns

HOLD

Telus Corp(T-T)

17/06/2024

 

Telus vs. BCE vs. for dividend income sustainability?

Favours Telus for the long run. More consistent performer for dividend growth. Share price over 10 years has been steadier. (He's based in Western Canada, so he may have a bit of a home-team bias ;)

But if he had to buy one today, he'd go with BCE. Trading at a 10-year low, appears oversold. Yield is about 8.5%, and looks secure -- reducing capex, and it could introduce a DRIP program (which would give it a healthier payout ratio).

telephone utilities

 

$21.480

Unknown

[TheeRook]

 Thus, tight financial markets put BCE in a tight spot. The high-interest expense on its debt reduced its free cash flow. As it retained its dividends per share, it paid out 113% of its FCF as dividends in 2023. In 2008, BCE did not cut dividends but only paid dividends twice instead of four times. While analysts hope BCE will not cut dividend rates, I will not rule out the possibility of