BCE Inc. (BCE-T)

He was very disappointed when they bought Ziply. They should have bought back shares. Makes sense to slash their dividend. They should focus on what they do well, including media assets. Expectations among investors are now very low. Things could change, but we're now at maximum pessimism.

When making investment decisions, discard the idea of what your cost base is. It doesn't matter, it's water under the bridge. It's behaviourally and psychologically difficult to rip off the Band-Aid and admit that the initial decision was an error and to realize the loss. But remember that the loss is real already. What matters is where it's going in the future, regardless of what your cost is.

Stock sold off heavily in the last 2-3 years because it was anticipating the dividend cut, which finally came. Dividend is now sustainable. Total return expectations are likely confined to more or less what the dividend yield is. Doesn't expect shares to bounce back sharply in the short term. Look at Telus instead.

Yield is now 5.8%, so still a decent yield. Won't be any dividend growth. Now more transparency on payout ratio, and partnership with PSP on Ziply eases financial burden. Could be a valuation gap up. A buy today is not for a short-term pop in the stock, it would have to be a long-term buy and hold.

All telcos are facing slowing immigration, competitive pressures, regulatory pressure. Over the very long term will be OK, as they supply critical infrastructure. If recession, nice place to be for stability and defensiveness.

Price competition, so pricing power has disappeared. Profitability flat. Building out 5G network increased debt. Immigration has slowed. All that had a huge impact on FCF and ability to pay dividend. Latest acquisition doesn't make a whole lot of sense. Wouldn't touch. He owns Telus and CCA.

For a class action lawsuit, you have to get investors together and prove that there was intention to mislead.

It has cut the dividend but the yield is still attractive. It is probably fairly priced and needs interest rates to come down. You can hold but could also take a look at Rogers.

Sold MLSE sports, bought a cable provider in the US. As late as Christmas, management was adamant that dividend would not be cut. The business is very difficult as a legacy communications company. Have to rely on mobile subscriptions. Competition's not getting easier. Stock's moved up, perhaps buyers are excited about it again. Yield is 6%.

The expectation is for a dividend cut of nearly 50% starting this month. We'll see if that happens. Technically, shares are having a rough go below both the 200-day and 200-week MAs. Earnings growth is sub-standard, even negative.

So, no, he wouldn't add at this stage. At some point, things could turn around a little bit.  Yield is 13.3% (would still be attractive even with a 50% cut). If you own, you can hold.

7% in one stock is way too overweight. Expects to see a haircut on the dividend. Management hasn't been making the best decisions over the last year or two. He's been in this name since mid-$40s, not happy, but hasn't exited.

Instead, use ZWU.

Cashflow does not cover dividend, and that's why there's talk of cutting it. Personally, he feels they'll never cut it, since most people who own it are looking for dividends. Better opportunities elsewhere.

No issue with defaulting on bonds from any of the big 3 telcos. For the equity side: not a lot of growth, price competition, CRTC always making new rules. 

Everybody has baked in a 50% dividend cut, but you will still receive a pretty good yield. Long term, the fundamentals work for the telcos, but this could take years. Meanwhile, collect the dividends.

Most people want to diversify. Temptation is there -- fat dividend, company will be around for years and years. He expects a dividend cut of 50-55%, DRIP may be stopped, more asset sales. Balance sheet and population growth have not been in its favour. Buy only a little bit down here ~$29.

His view is that if BCE starts aggressive measures to right the ship, the stock will actually rally.