RE:Dividend aristocratIf one invests in Cogeco through the less expensive parent company (CGO), then you get a higher dividend yield than BCE today, plus a better dividend growth profile (we expect +10%/year to continue, and shows the excellent long-term track record), lower debt leverage, and a much lower payout ratio. This disparity makes no sense to us, and we doubt it will last long.
Please note that we expect TELUS' payout ratio to stay above 100% until 2025 (elevated restructuring costs). BCE's payout should be much improved in 2024 with recently announced capex reductions, but we still estimate 115% if they do raise the dividend 5% again.