Q: when mister market allocates a 9 percent yield on utility does this not provide a red flag to 5i.? forgetting the fall back answer of falling interest rates what specific strategies does BCE need to implement to restore value to its shareholders ? what is the current payout ratio on the dividend and how does it compare to the last 3 years history? thanks Richard
5i Research Answer:
BCE needs to succeed with its cost cutting initiatives and improve margins. It needs to control capex and continue to win market share. It needs to clean up its structure and decide which of the multiple acquisitions it has done does it really want to keep. It needs to improve free cash flow. Payout ratio based on operating cash flow: 2023 46.2%, 2022 41%, 2021 40.6%