Q: My question pertains to the risk associated with BCE. It is often recommended as a good dividend stock (which it definitely is). However, when I buy dividend stocks, I am equally looking for safety in my investment. The following are few notes:
• The share price is lower than it was 10 years ago.
• In a response to Nick on April 3 you mentioned “the dividend in FY2023 was $3.7B, which is covered by a cash flow of $7.9B,” (which aligns with the Operating Cash flow). Looking at the FY2023 report “https://bce.ca/investors/AR-2023/2023-bce-annual-financial-report.pdf” (page 20) they mention that their dividend payout policy is to fall in the range of 65-75% of free cash flow and that their payout in 2022 was 108% and in 2023 111%. I would think that this may be a better gauge as their capital requirements appear to be regularly high, and a number exceeding 100% may not be sustainable for long.
• Their level of debt appears to be very high.
• Their revenues have had minimal increase year over year and their net earnings declined quite dramatically.
• I understand they are trying to turn things around but are heavy regulated.
What is your opinion considering the above, your understanding of the situation and the current share price which appears to be historically low (offering an incredible dividend).
Would you be a buyer of the stock? Thank You!
• The share price is lower than it was 10 years ago.
• In a response to Nick on April 3 you mentioned “the dividend in FY2023 was $3.7B, which is covered by a cash flow of $7.9B,” (which aligns with the Operating Cash flow). Looking at the FY2023 report “https://bce.ca/investors/AR-2023/2023-bce-annual-financial-report.pdf” (page 20) they mention that their dividend payout policy is to fall in the range of 65-75% of free cash flow and that their payout in 2022 was 108% and in 2023 111%. I would think that this may be a better gauge as their capital requirements appear to be regularly high, and a number exceeding 100% may not be sustainable for long.
• Their level of debt appears to be very high.
• Their revenues have had minimal increase year over year and their net earnings declined quite dramatically.
• I understand they are trying to turn things around but are heavy regulated.
What is your opinion considering the above, your understanding of the situation and the current share price which appears to be historically low (offering an incredible dividend).
Would you be a buyer of the stock? Thank You!
Q: When I read your answer to Richard on April 11th about BCE I shook my head and said, 'Yes, you've got it right.
Then I read the speach of the BCE CEO from the BSO conference and he stated as follows:
An important mandate is to create greater diversity within Bell Media, adding that diversity makes for great business. He said the company wants half of the English and French language programs it commissions this year to be generated by creatives from Black, Indigenous people of colour and nder represented groups. He wants to make sure the company delivers "differentiated storytelling" by having a "diverse inclusive workforce".
I have been a shareholder of BCE and have not been pleased with its performance to date, by a long shot. If I read the above, that the CEO delivered I wouldn't go near the equity.
Given what you said in your prior answer that needs to be done to retain the dividend and grow, I'm not sure this guy wants to, or knows how to do it.
I just feel he wants to run the most woke communications company in Canada.
Do you have faith in him doing what you stated to succeed?
Thanks
Sheldon
Then I read the speach of the BCE CEO from the BSO conference and he stated as follows:
An important mandate is to create greater diversity within Bell Media, adding that diversity makes for great business. He said the company wants half of the English and French language programs it commissions this year to be generated by creatives from Black, Indigenous people of colour and nder represented groups. He wants to make sure the company delivers "differentiated storytelling" by having a "diverse inclusive workforce".
I have been a shareholder of BCE and have not been pleased with its performance to date, by a long shot. If I read the above, that the CEO delivered I wouldn't go near the equity.
Given what you said in your prior answer that needs to be done to retain the dividend and grow, I'm not sure this guy wants to, or knows how to do it.
I just feel he wants to run the most woke communications company in Canada.
Do you have faith in him doing what you stated to succeed?
Thanks
Sheldon
Q: Need to raise cash. A half position in Tell us would work with a 13% loss.Or full position in Toronto Dominion Bank with a 6.5% loss .I also own a full position in Bell and no other bank stock.Core holdings are ENB and CIG447.Your take On best one much appreciated. Tks.Larry