
TSE:BCE
Good earnings with many new subscribers, but have a high payout ratio. Increased their dividend by 5%. There will be spectrum auctions and outflows from the company. So, when do you stop the dividend and pay for things that the company needs? Defensive stock. Good subscriber growth. Own it for the income.
BCE will come out with earnings tomorrow and is well positioned for growth and sustainability of dividends. They are half way through their goal of 8 million homes to receive fibre optic lines. BCE has free cash flow available and he thinks this leaves potential for dividend growth, unlike Telus (T-T) and Rogers Corp (ROG-T). Yield 5%. (Analysts’ price target is $61.78)
If you're an income-oriented investor, it's a good time to enter this name. Don't expect much earnings growth. Alarmforce was a good acqusition. Dividend will likely rise. Rising interest rates in Canada won't mirror those in the U.S. and expects only one or no hikes here, so will lessen impact on BCE. Reasonable valuation.
It has caught up with the other telcos. It rolled over just as the Trump trade started up again. It is one of the most stable stocks in the index. The valuation is reasonable. You have 5% yield, PE of 17 and very high return on equity. He holds a small position. They can maintain their dividend in a rising interest rate environment.
We have a stronger business market, and with business activity picking up it might be a little better for them, but at the same time you have got higher interest rates, and they have a chunk of the sports business, which is slowing down. He wouldn't be afraid of this. They’ve raised the dividend every year, and expects they will do it again this year.
‘On Balance Volume’ is looking at the buys and the sells. When buys are hitting the bid it is positive. Otherwise it means people are selling into the market. It has broken below its channel here. Yield plays are out of season here. It has done okay but struggled. Wait for it to get back into its trading channel.