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  5. BCE: Good Morning, Here's a "What would you do? [BCE Inc.]
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Investment Q&A

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Q: Good Morning,

Here's a "What would you do?" question.

Retired income investor, Like to yield at least 4% on any equity. Look forward to dividend increases.

Regarding BCE.

Hold 330 shares in cash account. Down 51%. Effective yield 2.54%.

Hold 1,100 shares in RRIF. Down 39%. Effective yield 3.15%.

May be wrong but I don't see the dividend growing any time soon.

Thinking of booking a loss in my cash account but unsure about RRIF. Do you see appreciation in nearish term

What would you do?

Thanks,

Dave



Asked by Dave on September 04, 2025
5i Research Answer:

First, we don't like looking too closely at effective yield. The yield is what is today. While we would not expect huge gains here, with the dividend cut embedded and the company making moves to lower costs, we would still see it as an OK income stock right now with a yield of 5.17%. We agree the dividend is not likely to change much in the mid-term. We would be willing to take a tax-loss in a cash account with a view to re-examine the stock in three to four quarters. In a registered account, depending on the set up of the account, we would be OK keeping shares for the dividend for a while longer, consider the low 12X valuation right now.