BCE Inc. (BCE.TO)

Happy to own and add. Compelling yield, which will continue to grow at a mid-single digit pace. Lots of headwinds for indebted households and business, especially in Canada. So he's focused on companies that cater to needs, not wants. Right in the middle of the fairway of that. Good stable grower, dividend compounder, undemanding multiple. Likes the mix of businesses.

(Brian is pleased to report to the viewer that his cat, who made its TV debut during Covid, is alive and well. With Brian's return to the studio, the cat is no longer upstaging him ;)

Dollar-cost average down or will it be a falling knife?

One: telcos fell this year because of rising interest rates. Two: BCE rolled out 5G, which is great, but consumers don't want to pay for it (it's pricey). The Canadian telcos are among the companies that have issued a lot of debt in recent years. They hold a lot of debt. Pays a 7.5% dividend yield, safe, but don't expect much growth unless rates fall in a big way (and he doesn't see a catalyst for that).

Would not be concerned about recent share price selloff. Dividend ~7% rate very strong. Good business model for the long term. Investors "getting paid to wait".

It is not growing too much but pays a dividend of 7%. It is a good company to own in a declining economy. Telecoms have sold off due to rising interest rates.

Own it for income, with attractive dividend yield close to 7%. Share price beaten down. Telecom industry in Canada is basically an oligopoly, despite upcoming increase in competition from Rogers-Shaw. Benefits from immigration.

Great cashflow. Great dividend yield of 7.15%, a level not seen for years. History has shown significant rally after those lows. Chart's started to respond to interest rates moving lower. Not a huge growth story, but will lift with calmer interest rates.

All Canadian telco stocks have moved in tandem, all facing the same headwinds. Higher interest rates mean less money to reinvest in the business or pay out in dividends. Higher expenses for 5G rollout. Very competitive space. Yield is 7.25%.

He owns Telus instead.

He recently switched from BCE to Telus, a subtle change. Telus has a bit better growth dynamics with healthcare and TIXT. 

BCE dividend is north of 7%, while Rogers is not that high. BCE has media assets. Tends to increase dividend every year, so it's a bit more geared to income. For the more conservative and income-focused investor.

They both share the sports teams in Toronto.

Rogers tends to be more focused on the cellular side. With Shaw acquisition, you should see more growth in the West. Cell ads will come. More competition. More growthy and volatile. If you made him pick, he'd choose this one now, as the Shaw acquisition will help grow the company.

Investors have been shifting into bonds and out of this and other dividend stocks. No change in BCE fundamentals. Pays a 7.5% PE at 15x PE, so good to own now and hold.

All telcos have been beaten up. Aren't in seasonality now. BCE will probably do okay. Pays a safe 7.5% dividend. They've already invested in 5G, so not in a risky phase. If interest rates flatline, this should be okay as you get paid that dividend.

He sees 35% downside. Earnings just barely cover their dividend. GICs pay higher returns.

Telcos in Canada are in a unique spot. Quebecor has really upped the competitive pressure, positive for the consumer but negative for BCE and Telus. Stay away, and see how things shake out. Prefers RCI.B, with its ability to shave costs from Shaw, or QBR.B.

Telus, BCE, and Rogers are all competing for market share. Telus and BCE are in a really good position in that race. People are loathe to give up cell phones. Yield of 7.5%.