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Bank of Nova Scotia (The) (BNS)
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BCE Inc. (BCE)
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TELUS Corporation (T)
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Pembina Pipeline Corporation (PPL)
Q: BCE has given up much of its post-dividend-cut rally - not to say that the cut was a bad idea, and maybe there's a support level lurking somewhere here. At the same time, I find myself wondering just what BCE's value proposition could be, now, to make it more attractive than T (or, for that matter, BNS or PPL, which offer similar yields)? Put another way: if investors have no reason to buy BCE other than income, and if declining interest rates are the only meaningful catalyst for share price appreciation, then, post-cut, isn't it at least as likely that it will continue to decline?
5i Research Answer:
We would consider all of PPL, BNS and T to be 'better' than BCE in terms of overall returns....