
TSE:BCE
This summary was created by AI, based on 45 opinions in the last 12 months.
BCE Inc. has undergone significant changes recently, including a 56% dividend cut to reinvest in growth, particularly in AI and data centre infrastructure. While the dividend remains appealing for income-focused investors, many analysts express concerns about stock appreciation potential due to intense price competition within the telecom industry and pressures from new entrants like Freedom Mobile and Quebecor. Although BCE is noted as a key player among Canadian telcos, opinions diverge on its growth trajectory, with some seeing potential long-term benefits from its strategic shifts, while others believe the company's core business faces ongoing headwinds. The sentiment towards BCE suggests it is viewed more as a defensive income investment rather than a growth opportunity, leaving investors split on whether it represents a buying opportunity or a risk in the current market environment.
Buy the stock or ETF? Yes, buy the stock. He doesn't buy ETFs. He wants to own exactly what he wants. You can own this through XIC or XIU, but you'd be buying lots of other stocks you may not want. BCE isn't a bad stock, but it's slow-growing. It has most to lose as people drop landlines. Also, the CRTC is pressuring telcos to lower cell phone bills in two years. It's defensive and low yield. Safe in an oligopoly. There are better ideas out there.
Telecoms? Rogers is an interesting name. He owns BCE instead. A push for lower cell phone rates along with greater investment in 5G networks are key headwinds in this sector. Telcoms will face a lot spending to build up 5G, which will impact the financials for the next few years. He likes the dividend they pay, however. If your time horizon is long, then holding is fine.
He likes telcos. Bond proxies have become overpriced, but telcos are less overpriced compared to REITs and utilities. They're stable with decent valuations. BCE is a good place to hide now. He's also long Rogers and Cogeco. Telcos can move lower, but less so in a market sell-off. When markets recover, though, telcos won't move up as much.