BCE is Canada’s largest communications company, providing a comprehensive suite of broadband, mobile, landline, and cable communication services to residential and business customers through Bell Canada and Bell Aliant. Bell Media is the company’s multimedia arm, with assets in television, radio, and digital media. Television assets include the CTV television network and many of the country’s most-watched specialty channels.
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Income Investor
BCE is dropping hints that the dividend is not sacrosanct. The company said its board will continue to review the dividend and payout policy. The directors “will consider the competitive, macroeconomic, and regulatory environments as well as progress being made on our strategic and operational roadmap,” the company said.
If the dividend were cut in half, to $0.50 a quarter, investors would still be receiving a 6.3% payout. That would be more in line with BCE’s historic payout rate. Don’t be surprised if it happens.
The company is profitable and is in no danger of going out of business. A dividend cut would not be the end of the world. - Gordon Pape
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BCE was first recommended here on December 15, 2008