TSE:BCE

BCE Inc. (BCE.TO)

30.73
+0.26 (0.85%)
as of Nov 13, 2026, 6:54:18 pm Market Open.
2003 watching
0
SELL
May 2029 strip bond. Good company and great management but a strip bond is basically a leveraged play on interest rates. You want to own Strips when rates are high, not when they are low, as is the case now.
BUY
Company has lots of cash that is burning a hole in its pocket. Now starting to use some of it to pay extra dividends. Technicals are clearly positive and momentum indicators are a little over bought but are still trending on the upside.
BUY ON WEAKNESS
Rogers (RCI.B-T), BCE (BCE-T) or Telus (T-T)? Telecoms look a little expensive. On a pull back he would be tempted to buy BCE, which has momentum and is gaining on wireless. Average revenue per unit is going up. Moving into internet protocol television (IPTV) is going to make them very competitive with cable companies.
COMMENT
May 1/29 Strip Bonds. Great for RSP account and Bell is a triple B credit, so moderate risk. As a 20-year security, the price volatility will be very high. 1% move in rates could see this move 18%-19% in price. In case of a leveraged buyout, there is a real risk that BCE would no longer be investment grade but become a high yield company. If Bell went into default, your bond would be worth zero. A lot of risks investing in Bell strips.
DON'T BUY
BCE (BCE-T) or Telus (T-T)? Has no exposure to telecoms right now. Too much competition. Dividends on these 2 are safe but don’t see a lot of earnings growth.
TOP PICK
Much more stable company than it was several years ago. Trading at a good multiple. Good free cash flow yield. 5.3% yield.
DON'T BUY
Doesn’t like any of the telecoms because of the competition coming down the pipe with the newer mobiles. If she were choosing one, it would be Telus (T-T) as it is in the part of the country that is seeing better growth.
BUY
Telecoms. BCE (BCE-T), Telus (T-T) or Rogers (RCI.B-T)? BCE is more of a dividend play with 5.4%. Growth is close to 6% long term. Rogers is more of a growth story. He would rate Telus as third.
DON'T BUY
05/01/2029 Strip Bonds. More risky because coupon is stripped. This is a risky bond.
PAST TOP PICK
(A Top Pick Oct 30/09. Up 35.65%.) Has been selling off which is probably profit taking. Good yield and expects an increase in dividends again in 2011.
COMMENT
Sees the 3 major telcos, BCE (BCE-T), Rogers (RCI.B-T) and Telus (T-T) as being on a continuum from conservative and slower growth with BCE through to aggressive and higher growth on Rogers end. Has all 3.
BUY
It has been a good holding for him. Management is doing the right things. There is still lots of turn-around potential and so he sees further upgrade. Agrees with BCE buying CTV, owner of BNN.
TOP PICK
Dividend story. Has raised dividends since the bottom and management is making little tuck-in acquisitions, which might amount to something someday creating a little bit of growth.
PAST TOP PICK
(A Top Pick Aug 27/09. Up 42.43%.) Still a Hold.
COMMENT
Biggest growth potential between BCE (BCE-T) and Telus (T-T) for a long-term investor? Tends to favour BCE because of us competition and more room to cut costs. Expect they will both grow dividends 5%-10% a year but thinks Rogers (RCI.B-T) and Shaw (SJR.B-T) program with her dividends and buybacks shares faster. (See Top Picks.)
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