TSE:BCE

BCE Inc. (BCE.TO)

29.69
-0.46 (1.53%)
as of Sep 25, 2026, 8:00:00 pm Market Open.
2008 watching
0
COMMENT
Good for preservation of capital and income? Consensus target on the telcos is not very positive but this one, plus the dividend, as the best total return, excluding perhaps Shaw (SHR.B-T). Dividend will be safe. Growth will be limited but will probably be 5% a year.
BUY
Comfortable with this one here, partly because of its 5.5% dividend. Has increased the dividend at quite a clip over the last 3 years. Will continue to struggle with wire line negative growth but well-positioned in the growing smart phone market.
DON'T BUY
Has had a great run and is around because of the dividend. Management did a great job wringing out costs. Getting growth in wireless, but landlines is a pretty dead business. Fully valued.
PAST TOP PICK
4.35% Series AG Preferred (Top Pick Jun 16/10, Up 25.60) Expected it to do well but not this well. It is a unique preferred. It is in a fixed floater, which is not understood well. It came up for a reset in April. You choose between fixed and floating. He stayed with the fixed. Got a bump up in dividend to 4.5%, so people were quote happy.
STRONG BUY
For years he said ‘stay away’. It is one of his core holdings now. Have high yields with predictability. BCE went through a great re-structuring. Stock is behaving remarkably well. Likes the telecom sector.
COMMENT
Nice solid defensive name in a market like this. Capital of side is somewhat muted because it has recovered to the point where the teachers had made their bid. She doesn't see much upside, maybe 5%. Nice yield of 5.5%. Very strong cash flow.
BUY
The big 3, BCE (BCE-T), Rogers (RCI.B-T) and Telus (T-T) are all facing threat of new entrants. This company’s strategy has been consistent and has been picking up and leading in market share in wireless. Extraordinarily strong company for the long term. Good dividend.
TOP PICK
(A Top Pick Feb 15/11. Up 8.52%.) Yielding 5.5%. Good management. Defensive and well run. More than capable of being wily competitors in a competitive market.
TOP PICK
3.65% due May 9/16. Attractive yield. Starting yield higher than Government of Canada means it is likely to have a positive rate of return in the next 12 months.
COMMENT
Earnings aren’t growing very quickly but have a decent dividend. Has new competition in wireless, which will dilute the industry a little. Core businesses are clearly not growing as fast as they used to. You can maybe make a 10% return annually including the dividend. Big money has already been made on this one.
DON'T BUY
They did a large write-off in converting to IFRS. Thinks it’s expensive. Model price $31.28, -18% differential. He thinks it is too expensive. They do have 5.5% dividend. If it comes back to the $37 level he would be interested.
BUY
Chart shows a long upward move from late 2008. Expect it to have a little resistance at the $40 level and then you are looking at the $50-$52 level. Telecom sector is the right space to be in at this time. (See Top Picks.)
HOLD
Likes the sector. Increased dividends twice a year in 2010 and 2011 but probably won’t continue doing that. This year the increase was more than expected. Did a joint venture with Telus (T-T) on the wireless side so are in better competition with Rogers (RCI.B-T).
DON'T BUY
It’s not such a great buy any more for capital appreciation. Thinks they will raise dividend. He thinks other telecoms, such as RCI.B are a better buy. Thinks at some point BCE and Telus will merge if the government permits.
COMMENT
9.25% Strip bond May 15/30? Strip bonds are the most volatile of all fixed income maturities and long term ones are the most volatile because they have no interest payments to shorten the duration. Your entire market value depends on long term interest rates. When rates go up, the value of the strip bonds go down. Consider selling and going into shorter term bonds, depending on your portfolio.
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