BCE Inc. (BCE.TO)

Tough time for BCE, just look at the chart. Spooked the market with expansion plans that people weren't anticipating. People own it for the dividend, lately that's been in question, could be cut down the road. Trading ~11x earnings, yield over 10%. 

Hard to sell when you're down this much, so hold and wait for a turnaround. You're giving up too much value to just say I'm down, and I don't want to see it anymore. Hopefully, there's some rebound down the road. The things you could transition into would likely have less value.

The yield is 11.4%. She used to own this for income, but sold it when they announced they bought the US telecom; BCE will need to spend to build that new company. Meanwhile, capital spending in Canada is rising and eventually peak. Only then, will BCE pay down debt. Yes, the dividend is high, but the street is asking why it's so high. Meanwhile, the Canadian wireless is competitive while immigration is declining, impacting subscriber growth in telcos.

Not the first company to have disappointing share performance. 

Won't be another Nortel, but whether the dividend is safe is a good question. He sold mainly on concerns about growth. Shocked market with risky US acquisition, rather than paying down debt to make dividend more sustainable. Management forgot who their shareholders are, those wanting safe income. 

Says dividend is on hold, which smells as though it'll be cut in the next year or so. Pitiful share price indicates that market's pricing this in. Yield is over 10%.

He owns Telus and QBR.B.

He won't add now. The dividend is over 10%; the company says it's safe, but the market disagrees, as shares decline. It may make sense for BCE to cut the dividend to pay down debt, but he's comfortable owning this. It's likely bottoming now, but don't buy it now to collect the dividend for the next 5 years (because it could get cut). No, he doesn't like the US acquisition and hopes management sees value in it.

A lot rides on the sustainability of the dividend. 10 1/2% is very attractive for a blue chip Canadian company and should support the stock, but there is downside if they cut the dividend. Interest rate cuts should also help. The P/E's of Canadian telecom companies are higher than around the world and there are higher payout ratios. 

Whole space hasn't done well. He'd focus on Telus, better growth potential. Painful decline is now at least basing.

BCE is close to reaching a bottom and should do OK. 

He's in a bit of a conundrum right now given how far it's come down. Yield is now in excess of 10%, which is usually a big warning sign. Dividend is frozen to be able to fund recent US acquisition; first time in a long time they've done that. Company probably loath to cut the dividend; MFC did it, and was in the doghouse for years. If he found a horse with a better total return, he'd switch.

Telecom industry is seeing more competition and fighting for market share. None of the telcos will see much margin expansion in the near term.

Tough to be a telecom in Canada, so it's moving beyond our borders with its latest acquisition. CRTC is often overbearing. Capex is not bad in the concentrated GTA, but increases substantially as you go across our big and somewhat underpopulated country. Telus is in the same spot. Hard to hold over the next little while.

Overdone at these levels, will probably bounce over the next 3-6 months. Interest rates coming down should help. 

Makes sense to take the loss to offset other gains, consider getting back in after the waiting period. Thinks it can maintain its dividend. Pays a really nice dividend, and if you need that to live your life, you many not want to sell. 

He did his deeper dive. He's going to sell on strength. Not willing to sell here, but he's not adding. Very discouraged by the company's recent moves.

He sold with news of recent US acquisition, wouldn't step in today. Company sold MLSE saying proceeds would be used to pay down debt, but then turned around and made an acquisition with a rich purchase price necessitating more debt. More capex now needed. Payout ratio still high.

Gave up a golden sports asset to buy a cable asset in the Pacific Northwest, instead of paying down debt. A head-scratcher. Competitive industry; harder to grow revenue, especially when costs are escalating. He owns Telus.

One of his favourite investing lessons: In 2008, the Teachers Pension Plan was taking this out at $41 + 1 share, above today's level and pre-5G. Didn't sell then, because his mentor said that if the assets are good, then the management is temporary. The market hates what management has done, but they now have built a 5G network and the investments of the last 10 years have made this company worth more than 10 years ago. He's happy to buy this under $40. There could be a change of government next year. It's undervalued now. True, he doesn't like the recent US acquisition, but they can apply lessons learned in building 5G here to there, the U.S. but the selling has been overdone.

At the present price its dividend yield is 10% and looks secure.The recent acquisition disappointed investors, including him, who were hoping for debt pay-down. He is hoping that the Board knows what they are doing.

In general, telcos are a tough area right now; earnings growth is weak. Investors are in wait-and-see mode. Yield is now 10.4%, lots of questions whether it can stay there. Management did say dividend won't increase, but did not say it would decrease and this is a positive sign.