BCE Inc. (BCE.TO)

Telco sector sees steady demand keeping it defensive, but not a growth rocket. Facing stiff competition, regulatory issues, underperforming the sector index. Cost-cutting and asset sales. Cheap. Juicy yield of 8.5%. If you're in it for the yield, and you can stomach the volatility, cost cuts could pay off in the long run.

Dividend seems likely to be ratcheted back to get cashflow back up. Challenging time for most telecom stocks. Earnings will be challenged for this name, because of types of businesses it's in. He wants growth.

The worst is likely over here, and we think a dividend cut would actually be well-received by investors at this point. We would regard it as a HOLD but could be accumulated (slowly) into any new weakness that develops. 
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Recently added a bit to his position. BUT: do not buy it for the current dividend yield. Management maintaining dividend for 2025, but Lorne strongly believes it will be cut in 2026 and he wants that cut. Generates lots of FCF, but lots has been going to the dividend. He'd much rather the FCF be used to pay down debt and invest in its business.

In his early days, someone said to him that when you see a high dividend like this one, "The dividend is talking to you." If the dividend were cut, the stock might actually pop a bit, as it would demonstrate management's focus on reinvigorating the business.

When he chose this last year, he was looking for a bounce. Which did happen, but then everything came unglued. Regulators, competition, and payout ratio is too high. In a downward channel on book value. Earnings are also in a downward channel. FMV has lots of upside potential, but that's the only bright spot. Be cautious here.

He owns no telcos. Lots of competition, regulation uncertainty, lots of debt. Should cut dividend. Likes companies with high free cashflow to grow the business.

Hurt by pricing, competition, and CRTC rulings. Tailwinds from immigration have changed. Intensive capex with higher interest rates. Needs to sell assets and towers (and lease them back). Dividend is too high. Compelling down here. 

In registered accounts, he's held on. In non-registered, he sold in November for the loss, and then got back in after the 30 days passed. You'll be fine longer term.

The Firefly acquisition made her sell the whole position; US market is very competitive, plus this will require capex. Balance sheet very levered. Yield is over 12%; market anticipates a dividend cut, and wants them to so they can move on. Dividend under ongoing review by the board. Any cut might see further drop in the stock, and you can reassess the company and its valuation at that time. 

Better income stocks to own out there. When you buy for income, you want good coverage, visibility, and increases. This name doesn't provide any of that.

A dividend cut is now being considered since the payout ratio is elevated. They could then use the money saved for paying down debt. He feels that the risk-reward is not attractive enough.

Tough question. At this point, less downside than upside. Down ~50% from highs; if you didn't get out earlier, tough it out. Consider adding a bit more. He'd say 50/50 chance dividend gets adjusted. US acquisition will require hefty capex, and that's what spooked the market.

What's changed is that in the last conference call, management suggested the dividend is under review, with the payout ratio "elevated". Institutional investors are encouraging BCE to cut it and use the savings to pay debt or fund growth. A cut could trigger a relief rally. The risk/reward isn't attractive.

Not in the telco space right now. Sold off assets. Dividend is under scrutiny.

He's not a betting man, but if he were he'd say yes.

We all know the bad story, but what's the good story? Great assets. Can immunize the balance sheet by raising equity. Could sell assets and perhaps rent some instead, stop the DRIP, cut the dividend. If dividend cut in half, stock may drop another 10%, but thinks many would step in to buy. Yield is 11.25%.

Phone business in NA is gradually deteriorating and being replaced by technology. Spent a lot of $$ building fibre to the home. Stock's falling because current yield of 12% not covered by current cashflow after that massive spend. He holds a little tiny bit for the yield.

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Is on a downtrend after failing support at $52 then $44. It just had a monster move to the downtrend recently, but there's a pretty good chance this is oversold and could bounce.