Q: Hi 5i Team:
Before you reach out to that rotten egg to hurl in my direction for asking yet another question on this stinker of a company (!) let me say a few words in my defense! I spent the last 39 mins or so going through all the recent questions on BCE using your symbol search! I couldn't find the answer to the question that I am going to ask now!
Hypothetically IF BCE were to cut it's dividend by 25% ( currently at 11.58%) then what will be the stock price post cut? It is 34+/-.
However if the stock price drops a lot, wouldn't it make the dividend go up? I thought there's an inverse relationship between the stock price and dividend, no?
In any case, I know you are not too keen in speculating about price targets. Based on your experience with large companies that cut their dividend, what's your price target for BCE assuming it cuts it's dividend?
Many thanks.
Before you reach out to that rotten egg to hurl in my direction for asking yet another question on this stinker of a company (!) let me say a few words in my defense! I spent the last 39 mins or so going through all the recent questions on BCE using your symbol search! I couldn't find the answer to the question that I am going to ask now!
Hypothetically IF BCE were to cut it's dividend by 25% ( currently at 11.58%) then what will be the stock price post cut? It is 34+/-.
However if the stock price drops a lot, wouldn't it make the dividend go up? I thought there's an inverse relationship between the stock price and dividend, no?
In any case, I know you are not too keen in speculating about price targets. Based on your experience with large companies that cut their dividend, what's your price target for BCE assuming it cuts it's dividend?
Many thanks.
5i Research Answer:
The actual dividend remains the same, but the yield does change with stock price changes. So if...