Related posts

Nervous markets await Nvidia
Investor Insights

This summary was created by AI, based on 90 opinions in the last 12 months.

BCE Inc. has recently been the center of considerable scrutiny, particularly regarding its high dividend yield, which is currently around 12%. Many analysts believe that a dividend cut is necessary to free up cash flow for debt reduction and growth opportunities, aligning with institutional investors' desires. While some view a potential cut as a positive catalyst that could enhance the company's financial health, others express caution due to a general weak outlook for the telecom sector, compounded by competitive pressures and regulatory challenges. The consensus points to a challenging environment with elevated debt levels and the need for strategic asset management. Current valuations indicate that, despite the risks, BCE may still present a buying opportunity for long-term investors looking for income.

Consensus
Hold
Valuation
Fair Value
Similar
Telus,T.
WEAK BUY
Does dividend cut make this a buy?

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.

DON'T BUY
Recourse for dividend cut?

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.

HOLD

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.

HOLD
Dividend cut by 56%.

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%.

HOLD
Average down?

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.

HOLD
Investor is 62, planning to retire in 2 years. Down almost 50%, 7% position in the portfolio. Dollar cost average down?

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.

DON'T BUY

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.

DON'T BUY

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. 

WEAK BUY

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.

PARTIAL BUY
Retiring in a week. Invest entire RRSP of $300k at 13% yield for income?

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.

DON'T BUY

Challenged sector for several years, mainly since interest rates started rising. Bond proxies that are pretty compelling when there's financial repression as we had from 2008-2022. You have to pick your spots. Likes Telus, but not the rest.

Pretty much a certainty that BCE will cut its dividend; it's more a question of when and by how much. Yield is now up to 13%; a screaming red flag from the market telling you that dividend is not sustainable. 

PARTIAL SELL
Down 9% -- hold or sell?

Relatively high yield. Defensive sector. Elevated payout ratio, rising debt, and weak growth outlook present too many risks. Hasn't done that poorly this year. 12-month price target of $34.75. If you're concerned, you could sell 1/4 or 1/3 as a sacrificial lamb.

RISKY

Troubled. The business is becoming more and more competitive. Can't cover the dividend. Company claims that when massive fibre build is complete, dividend will be covered; most investors don't believe that. If dividend were cut, stock would go up. Yield is 12%.

He's a more aggressive investor than the rest of his team. He'd say it's a speculative buy now; BCE is not going away.

BUY

Dirt cheap. Multiple is ~10-10.5x PE. Market's lost confidence. FCF generated is roughly in line with the dividend, but looks undercovered relative to earnings. If dividend were to get cut, would be a positive catalyst. US acquisition will suck cashflow.

People own it for the dividend, not for growth. Cash cow. If management retrenches, there's a path to getting a better multiple. Very little downside. Buy here if you want income.

BUY
BCE vs. T

He actually likes both. Looking at price action over the last few days, these names have held up rather well. Sector's bottomed out. Both names have high dividend yields, tremendous FCF, lots of opportunity going forward to buy back stock. Worst is over for the sector, phenomenal opportunity.

With BCE, you should anticipate a dividend cut; this would be fine with him, as it will free up $$ to reduce debt and possibly buy back stock. If that happens, it would be a positive rather than causing the bottom to fall out of the stock. Investment community wants it to cut the dividend, reduce debt, and undertake a better allocation strategy. Still throwing off significant cashflow. Too early to say if it overpaid for the Ziply acquisition.

Telus has done better, with better growth. Invested in other things to diversify its business. 

Showing 1 to 15 of 2,195 entries

BCE Inc.(BCE-T) Rating

Ranking : 5 out of 5

Star iconStar iconStar iconStar iconStar icon

Bullish - Buy Signals / Votes : 37

Neutral - Hold Signals / Votes : 37

Bearish - Sell Signals / Votes : 37

Total Signals / Votes : 111

Stockchase rating for BCE Inc. is calculated according to the stock experts' signals. A high score means experts mostly recommend to buy the stock while a low score means experts mostly recommend to sell the stock.

BCE Inc.(BCE-T) Frequently Asked Questions

What is BCE Inc. stock symbol?

BCE Inc. is a Canadian stock, trading under the symbol BCE-T on the Toronto Stock Exchange (BCE-CT). It is usually referred to as TSX:BCE or BCE-T

Is BCE Inc. a buy or a sell?

In the last year, 111 stock analysts published opinions about BCE-T. 37 analysts recommended to BUY the stock. 37 analysts recommended to SELL the stock. The latest stock analyst recommendation is . Read the latest stock experts' ratings for BCE Inc..

Is BCE Inc. a good investment or a top pick?

BCE Inc. was recommended as a Top Pick by on . Read the latest stock experts ratings for BCE Inc..

Why is BCE Inc. stock dropping?

Earnings reports or recent company news can cause the stock price to drop. Read stock experts’ recommendations for help on deciding if you should buy, sell or hold the stock.

Is BCE Inc. worth watching?

111 stock analysts on Stockchase covered BCE Inc. In the last year. It is a trending stock that is worth watching.

What is BCE Inc. stock price?

On 2025-05-16, BCE Inc. (BCE-T) stock closed at a price of $30.11.