Saturday, March 3, 2018

Is Now A Good Time to Buy BCE?



Closed at $56.09 on 02 Feb 2018
52 week high/low $54.44-$63.00
Currently trading at a 12% discount to it's 52 week high
Dividend Yield - 5.4%

The Company

"BCE Inc., a telecommunications and media company, provides wireless, wireline, Internet, and television (TV) services to residential, business, and wholesale customers in Canada. The company operates through three segments: Bell Wireless, Bell Wireline, and Bell Media. The Bell Wireless segment offers integrated digital wireless voice and data communications products and services. The Bell Wireline segment provides data, including Internet access and Internet protocol TV, local telephone, and long distance, as well as other communications services and products. This segment also offers competitive local exchange carrier services; business service solutions, such as hosting and cloud, managed, professional, and infrastructure services; and Web and audio conferencing, and e-mail solutions. The Bell Media segment owns and operates approximately 30 conventional TV stations; 34 specialty and pay TV channels; 105 radio stations; 30,000 advertising faces; and 200 Websites. This segment also offers out of home advertising services and digital media services. BCE Inc. offers its services through a network of corporate and dealer-owned retail stores, national retailers, and call center representatives, as well as Websites and door-to-door sales representatives. The company was formerly known as Bell Canada Enterprises Inc. BCE Inc. was founded in 1880 and is headquartered in Verdun, Canada."


What's not to like here as a dividend growth investor? Price is historically cheap and yield is an astonishing 5.4%.

HISAs are yielding 1% and bonds are woefully a poor investment for your retirement portfolio.

BCE has been around since 1880 as a company, you can't get anymore stable a franchise than that. When you look around for income investments to fund your retirement this stock has to be seriously considered as a core holding. It is in all my portfolios.

I look at price and yield and what I can buy that stock for today and what will the yield + growth give me in the future. BCE has a historical 10 year dividend growth record of 7% + 5.4% dividend yield = 12.4% annual yield.

That is an outstanding record of compounding and when you consider being able to now buy BCE at over a 10% discount to it's 52 week price, it really is being thrown into the discount bin at the dollar store.




BCE is a core holding and I would not hesitate to buy more at these prices. The combination of this kind of yield and long term growth record to me is irresistible.

Do you own BCE and would you buy it here? 


Recommended Reading: Dividends Still Don't Lie


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