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  5. BCE: Hello, I would like your opinion of BCE. [BCE Inc.]
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Q: Hello, I would like your opinion of BCE. I have had a position in BCE, on and off, since 1996. I sold it last year for tax-loss reasons, bought and sold it again twice since for tax-loss reasons again, riding it from 48$ to 29$ recently. From June 26th, I will be able to buy it again after 30 days, probably at or below my last selling price. I suspect I suffer from « official » loss aversion by wanting to buy it again instead of moving on and buy something else, like BTB REIT, for income (like BCE), for less capital and the same income without income tax as a bonus. So, if I were a potential new investor in BCE, for income and some growth, would you recommend it for a long term hold? Are the dividend cut and PSP investment enough to lift BCE out of its hole? Thanks!
Asked by Martin on June 24, 2025
5i Research Answer:

The cut was needed, certainly. While we would not expect miracles here, with its large size, dividend, and valuation we think there is still potential in BCE. Sentiment is low, and any positive news could see positive price movements. Rates are also likely to go lower, which should help the stock. It certainly would not be on our top pick list, but we think it has more potential than most REITs from current levels (we are not taking tax into account here, only upside potential). We would be OK buying 'some' and seeing how it does in its turnaround plan before adding more.