Q: I could sell BCE for a "very much needed" capital loss. Would you put the proceeds into Telus or just wait 30 days and buy back BCE? Thanks Ron
5i Research Answer:
It is a bit of a wash; BCE has already cut its dividend, and investors are worried T will too. As a result, T's yield is 3.5 points higher. With a tax loss/re-buy strategy, the safer bet is likely to go back to BCE, but we would also review valuation and yield differential after the 30 day period as well.