BCE Inc T.BCE.PR.K

Expenses vs Dividends

[BlueDawn]

Dividends in a Quarter: 910M
Operating Costs in a Quarter: 3,446M (reducing this by 10% is the same as cutting the dividend by 37%). The shut down of half of the source stores, the selling of the radio stations and northwest tel is a good start,  need to go a bit deeper and look at cutting middle management, contractors and software licenses.

Tax + Interest in a Q: 582M
= 4,938M

On a 6,011M Revenue
That leaves just over a Billion a Quarter for other expenses, leases and capital expenditure. 

I keep hearing that the 910M is in danger of being cut but I don't see that required.  The real opportunity is reducing capital expenditure and operating costs.

[Experienced]

BlueDawn...good points As I mentioned in an earlier post, I have seen many ups and downs for BCE over the decades and see the beginnings of a consolidation in and around current prices.  I am holding for now and if the consolidation holds I will likely overweigtht BCE for a whilemand then sell the extra holdings once the price recovers. But getting back to your point... I had a

[Davesnothere]

Very thoughtfull and helpfull post Experienced, as always. Thanks for the encouragement!

[Dibah420]

Points well taken.   Salaries/Benefits being a large part of Opex, reducing payroll is the handiest tool for mgmt in a pinch. Keep in mind, however, that given the severance outlays, results don't register for a few Qs.