BCE Inc T.BCE.PR.K

Give it too me straight, no need to be rude.

[567432Gains]

Ok so I'm 24 years old, I have my TFSA almost maxed out and it's doing ok and this is one of my holdings.

I bought this because although they are taking on debt, I see it as something that's not going anywhere, pays a good dividend, and in the long term should do me well.

I own 172 shares at $45.56CAD, and I think I'll bring it up to a round 200 this week. It is set to DRIP. 

Is this a dumb move? I know it's not "risk free" or anything, but I'm buying it for the long term to be reasonable stable growth through the share appreciation and dividend DRIP. 

I am aware that you guys can only see what I see, but I thought I'd ask what your opinions are for someone in my position of being young and building a long term TFSA position. 

Cheers for a polite response if you can give me one, and if not polite then please don't bother. You don't have to say it's the right move if you don't think it is, but please refrain from getting nasty no matter your position. Thank you.

[Ocalaman]

Congratulations for taking the bull by the horns and deciding your own future, you sound  like a very smart cookie and will do very well !  Am not sure what you you do for due diligance on your holdings but at the bare minimum should be aware of industry competition and compare the financial metrics for each like competitor , this one had a different metric introdued last year and its

[Gabriel]

Decisions in infrastructure economics are based on how the proposed ”project” compares to the counterfactual or do-nothing.   The “counterfactual”: With a payout ratio of over 100%, Bell was unable to support its dividend with its operating income, resorting to debt at higher interest rates as credit rating dropped from BBB+ to BBB. Ruling from the Canadian Radio-television and

[Gabriel]

On the stock price. The transaction isn't large compared to the enterprise value of Bell (less than 10%). But you still get Ziply for free if you buy now since the market has reduced the valuation of Bell by about the same amount of the acquisition. But you get the additional EBITDA of  approximately 0.5$ per share now and heading to 1$ in the next few years

[RayDonovan78]

You should be buying more at these levels. You will be very happy in 3-5 years.

[PuerSimia]

In my opinion you don't want to be buying at this time. I unloaded this morning at a loss of $25K. One lesson that I keep having to learn is buying a stock when it's on sale. Sometimes that works, but only after you have done a thorough due diligence, and, keep up on developments. That's where I went wrong. Here are the developments that lead to my decision: - Debt has climbed to 39B

[Galaxym31]

The only thing you didnt know before the stock price decline was the acquisition so why did you not sell a long time ago ? Letting the stock price dictate your investment strategy will almost always be a losing position not only did you take a huge loss you threw away like you stated 14 000 but what do I know .

[RayDonovan78]

Yes, I agree. If you have/had a decent position, a 25K loss on paper is not a problem especially with a stock like BCE. At one point duing Covid I was down over $60K on a stock then sold it for a $80K gain.