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  5. BCE: I live off my dividends. [BCE Inc.]
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Q: I live off my dividends. Telus' dividend is not covered by its earnings...either eps or cash flow. Is the dividend eventually going to be cut? Should I sell and add to BCE?


Paul and worried

Asked by PAUL on August 18, 2021
5i Research Answer:

As per our data, Telus' dividend is in good shape and we would not be concerned. Based on earnings and operating cash flows, the payout ratio over the last twelve months shows as 79% and 23% respectively. This is actually better than BCE at 110% and 39% for the same ratios. We are comfortable with both and we like BCE for stability and T for a bit more growth.