Investment Q&A

Q: I have held BCE for about 3 years now. Cost of $20K and it's worth $13.5K now. Down $6,500... 34%. Wondering if it makes sense to sell half of my BCE (about $7K) and buy $7K worth of Telus to try and leverage any potential gains across both rather than just one. I guess, wondering if splitting my investment across two of these telco's makes sense ... and a brief reason as to why (or why not) I should do it.

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!

Q: I hold a small position in BCE. My thinking is that other than the dividend (yield), it is pretty much "dead" money for the foreseeable future. I could replace it with Telus, but I'm not impressed with its performance over the last few years. Taking sector & industry out of the equation, are there some other stocks that you like better [preferably with the potential for growth / share price appreciation & a (growing) dividend] that trade around the same price as BCE or less? Thanks once again for your great service.

Q: Hi Peter and 5i Team,

An article in the Globe & Mail (May 27) was titled:

“Telus to invest more than $70-billion in Canada over next five years to expand infrastructure”

Given that its payout ratio is now approximately 100%, and if interest rates should rise while there’s a slowdown in the economy, is this a prudent decision for Telus to take? Having recently sold BCE at a loss, and still owning T, are my concerns justified?

In the Communications Services Sector, we also have a small position in QBR.B, which is doing reasonably well so far. Its debt leverage is the lowest among its peers, which I believe to be an important metric at this time.

Thanks in advance for your insight.

Q: If I would like to choose between these two in communication sector for income and long term, which one would you recommend? Thank you.

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?

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.

Q: Thoughts on BCE post dividend cut?

Q: Hello

Which of these 3 major Canadian wireless service providers is the best/safest buy at the moment taking in to account capital gains going forward and dividends.

Q: I need to liquidate a portion of a portfolio holding the 8 stocks listed. Can you please rank them in the order you would sell (first to last) based on potential for total return over the next 3-4 years?

Q: Hi Peter and 5i Team,

It now seems certain that BCE will be forced to cut its dividend. Based on your experience, what is your "crystal-ball" prediction on the effect such a dividend cut would have on the share price?

Incidentally, as BCE shareholders in a RRIF, we recently voted against the CEO and every single board member. I suspect that the upcoming AGM will be a rather robust event, putting it mildly. For us, and so many other small retail investors, we had faith in this "dividend aristocrat" and "safe widows and orphans" stock. Thank goodness 5i always stresses diversification, but the almost 50% decline in SP for our BCE holding is hard to take.

Thanks in advance for answering this question, and for reading my "rant".

Q: I am left wondering if your romance with BCE remains warm and positive for a future together, or might there be a separation pending? Is BCE’s vibe a little too “landline in a wireless world?

Q: Hi Peter and Team,

Do news stories like this affect the stock price of either the plaintiff or the defendant?

“Quebecor Inc.-subsidiary Videotron is suing Rogers Communications Inc. for $91 million over an alleged breach of contract related to the sale of Freedom Mobile two years ago.”

We have a small holding in QBR.B and although it’s slightly down in price compared to when we bought it, it certainly is holding up better than our large holding in BCE (down almost 50%, not including dividends), but BCE is an issue for another question!

Thanks for the great help you’ve supplied over the years.

Q: Do you think HDIV would be a suitable replacement for BCE in this market or would you recommend another stock/etf? Looking to recoup some of my losses on BCE.
Thank-you!

Q: Hi 5i - what do you think the 10 year prospects are for BCE and Telus? Would you start or add to a position at current prices?

Thanks, Neil

Q: In the 2008 financial crisis Manulife a good mom and pop steady dividend payer cut its dividend that many small investors depended on and Manulife took over a decade to start to recover. I see BCE much the same as many of its stock owners have depended on it for growth and dividends and is in most Canadian portfolios. These small investors once bitten are unforgiving and will not return. What do you think?

Q: If I have a drip set-up, is there a reason why the reinvestment did not occur in January?

Q:

BCE is trending down, ex-dividend. If YOU would cut the dividend, would you wait for next earning release in May, or sooner? What would be the probability the stock stays flat, instead of up or down when/if the dividend is cut?

Is Rogers a better bet at the moment or just a hold (I just sold it for tax loss) ?
I’m sticking with my Telus for now.
Thanks. Have a good week.

Q: Hello 5i,

I'm thinking of selling my BCE shares in my non-registered account for tax loss purposes since I'm also expecting a dividend cut shortly. I'm looking to replace the dividend income as much as possible and I'm thinking of putting the proceeds in Telus (which I already own) or FRU.UN (not owned but I already own TOU). I'm debating whether a possible capital appreciation with BCE following a dividend cut makes it worth rebuying after 30 days instead of continuing to hold T or FRU.UN for the long term? Overall, my goal is to maintain my dividend income with this particular trade.

I'm also thinking about replacing FSV with HPS.A (I had HPS.A FOMO a few months ago but I'm not sure it's going back to its previous days?) in my TFSA for overall returns and I'm wondering if you have a preference between the two?

Thank you,
Lisa

Q: I have 3% position in BCE down 30% nonregistered account. I am thinking of selling and buying BN for long term. Can I have your thoughts?