Q: Thoughts on BCE post dividend cut?
5i Research Answer:
We think it is the right move, and we are glad that it was more than 50% (56%) to show that management is serious. The stock has reacted positively to the worst-kept secret out there. The cut alone won't 'fix' things, and there is still work to be done. But it will of course save cash and allow debt to come down faster than without the cut. The stock might flatline a bit after today's move, but the worst might be behind it now with at least this uncertainty out of the way.