Related posts

Markets fade to end the week downTech and TD lead rallyMixed Tuesday
Investor Insights

This summary was created by AI, based on 96 opinions in the last 12 months.

BCE Inc. is currently facing significant challenges in the telecom sector, with concerns surrounding its elevated dividend yield, competitive pressures, and a high debt load. Many analysts suggest that the company may be forced to cut its dividend, which could be perceived positively by investors looking for a focus on debt reduction and business reinvestment. The consensus indicates that earnings and cash flow are under pressure, which has spurred discussions about a potential dividend review by management. Despite the negative sentiment surrounding the stock, some experts see value in BCE due to its strong assets and potential growth in cash flow from infrastructure investments, particularly in fiber optics. However, the overall market sentiment remains cautious, suggesting a wait-and-see approach for potential investors.

Consensus
Hold
Valuation
Fair Value
Similar
TQO,RCI
HOLD

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.

DON'T BUY

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.

HOLD
Trevor Rose’s Insights - Trevor’s most-liked answers from 5i Research

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. 
Unlock Premium - Try 5i Free

PARTIAL BUY

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.

PAST TOP PICK
(A Top Pick Jul 09/24, Down 16%)

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.

DON'T BUY

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.

HOLD

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.

SELL
Price almost down to purchase price; hold for the dividend?

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.

DON'T BUY

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.

HOLD
Underwater -- hold or sell?

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.

DON'T BUY

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.

DON'T BUY
Hit multi-year-low closing price on December 30.

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

COMMENT
Likelihood of dividend cut?

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%.

HOLD

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.

See his Top Picks.

COMMENT

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.

Showing 1 to 15 of 2,177 entries

BCE Inc.(BCE-T) Rating

Ranking : 4 out of 5

Bullish - Buy Signals / Votes : 17

Neutral - Hold Signals / Votes : 20

Bearish - Sell Signals / Votes : 20

Total Signals / Votes : 57

Stockchase rating for BCE Inc. is calculated according to the stock experts' signals. A high score means experts mostly recommend to buy the stock while a low score means experts mostly recommend to sell the stock.

BCE Inc.(BCE-T) Frequently Asked Questions

What is BCE Inc. stock symbol?

BCE Inc. is a Canadian stock, trading under the symbol BCE-T on the Toronto Stock Exchange (BCE-CT). It is usually referred to as TSX:BCE or BCE-T

Is BCE Inc. a buy or a sell?

In the last year, 57 stock analysts published opinions about BCE-T. 17 analysts recommended to BUY the stock. 20 analysts recommended to SELL the stock. The latest stock analyst recommendation is . Read the latest stock experts' ratings for BCE Inc..

Is BCE Inc. a good investment or a top pick?

BCE Inc. was recommended as a Top Pick by on . Read the latest stock experts ratings for BCE Inc..

Why is BCE Inc. stock dropping?

Earnings reports or recent company news can cause the stock price to drop. Read stock experts’ recommendations for help on deciding if you should buy, sell or hold the stock.

Is BCE Inc. worth watching?

57 stock analysts on Stockchase covered BCE Inc. In the last year. It is a trending stock that is worth watching.

What is BCE Inc. stock price?

On 2025-03-21, BCE Inc. (BCE-T) stock closed at a price of $32.57.