
TSE:BCE
This summary was created by AI, based on 41 opinions in the last 12 months.
BCE Inc. has seen a tumultuous time recently, marked by a significant dividend cut that has led to mixed reactions among experts. Many view BCE as a defensive stock, primarily appealing to income-focused investors rather than those seeking aggressive growth. Analysts highlight ongoing challenges, such as competitive pressure from new technologies and rivals, particularly the impact of Starlink, which threatens traditional telco revenue models. Despite these struggles, opinions suggest that BCE's investments in AI data centers and efforts to reduce costs could lead to future revenue stability. Overall, while there is no unanimous excitement about the stock's immediate growth potential, the consensus leans towards it being a safe bet for dividend yield amidst ongoing competition and structural changes in the telecom industry.
He expects interest rates in Canada to keep rising, as high as 15%. BCE is tied closely to interest rates. He targets $35.81, or 32.5% lower than now. Their earnings can't match the dividend they pay out. Basically, you're losing equity (book value) as you collect the 7.24% dividend. Or you can buy a GIC of 5.5%.
Chosen for defensive income. All telecoms have faced headwinds from interest rates, regulatory concerns, and increased competition. No one's gone super price-competitive yet. Immigration a positive. Capital spending on fibre should trend down next couple of years. Happy to hold. Yield just over 7%.
The classic income stock. The dividend keeps rising year after year and he has clients who've owned it for generations. The stock appreciates modestly. All income stocks are in the toilet because of high interest rates, but now is a great time to buy it. It pays a dividend of 7%. They're finishing their 5G build-out, which will lead to lots of cash flow and maybe higher dividends. It's the least-indebted of the big 3 telcos. Oversold now.
(Analysts’ price target is $62.06)
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.