Q: I am a longterm dividend investor. With the dividend cut now out of the way, do you consider BCE a BUY or a HOLD for acore, longterm holding, or should investors exit this sector? I am currently underweight this position. Thanks.
5i Research Answer:
We would be comfortable holding and 'accumulating' into any weakness now that the news is out. The fibre deal today with PSP should also alleviate some balance sheet pressure. We would not expect miracles here, but a more stable 5.64% dividend is still relatively attractive.