How low do you think this will go?
That dividend is looking really juicy.
I already have a fair bit but could add more.
That dividend is looking really juicy.
I already have a fair bit but could add more.
BCE
- Thread starter Carvher
- Start date
I get the feeling that the market will fall even more this coming weekend. Especially when US government might shut down on Saturday?
It is going to be a bloody autumn.
everything is down except my H and SU and FTS.(edit just check and everything is down except SU) 
Im tempted with BCE as I have a position with them, but I am hesitant that dividend payout is more then they can handle since their payout ratio is over %150. got burned with AQN and way back when corus. learnt a lesson on unsustainable payouts.
Im also considering CPX although their payout(%130) is higher than I would like it to be but Im a fan of utilities.
TD or BNS probably in the next quarter. perhaps ADN if it drops to a price mark that works for me.
Im tempted with BCE as I have a position with them, but I am hesitant that dividend payout is more then they can handle since their payout ratio is over %150. got burned with AQN and way back when corus. learnt a lesson on unsustainable payouts.
Im also considering CPX although their payout(%130) is higher than I would like it to be but Im a fan of utilities.
TD or BNS probably in the next quarter. perhaps ADN if it drops to a price mark that works for me.
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I stay away from bank. BCE is tempting. Watching it closely.
Telcos, pipelines, banks etc are ALL tanking. Will continue to tank until the Fed/BoC declare a pause, then sometime thereafter reverse the interest rate trend.
Keep your powder dry. A time will come to start loading up on bluechips very very cheap.
Keep your powder dry. A time will come to start loading up on bluechips very very cheap.
You mean the stock market as a whole will continue to tank until rates pause right? Lol
Fine fine...but to be fair you said Fed/BoC and I took that as North America, which would mean Tech is taking the biggest hit of all!!! LOLTelcos, pipelines, banks are pretty much the whole TSX stock market by capitalization....
I have a decent holding of BCE. Just collect the 7% dividend while waiting for the market to recover. I think they have decent enough FCF to cover their dividends
Sentiment towards telecom are very negative. Long term hold.
everything is dropping. picked up bce at 51.
BCE is a regulated utility guaranteed a rate of return. So, is the regulated return inadequate?
No. Doesn't work like that. It just gives them regulated framework which gives them a pretty good idea what their revenue will be.
Simply put, dividends are paid from free cash flow (think profits but it can get complicated based on numerous things).
They have alot of debt which is perfectly normal for a telco but the cost to service that debt can rise considerably as interest rates rise. Also, recession can cut into revenue and therefore income.
I'm not saying they will cut the dividend (who knows?)
Keep in mind they also have massive capital expenditures that they could cut back on to increase cash flow. My guess is they will do everything possible to not cut dividend.
I'm sure somebody on here knows more about them than I do. Would welcome more info from other members.
I remember back when they created BCE Enterprise (check fact) and blew their brains out getting involved in a trust company and real estate. I think (hope) they learned their lesson and stuck to stuff where they have expertise.
Sad tale when they spun-off NORTEL and that company blew up. My broker had a couple of NORTEL retirees who took a 30% (if I remember correctly) haircut on their pension.
Yeah, it's good to keep an eye in these sectors but be careful with Reits.
Even if rates come down a little in 24, their debt will still be higher than it is now when it's renewed. I guess same could be said for other sectors.
You need to do a dive into a companies debt.
I still like tech alot more. No debt, lots of growth, decreasing rates will spur a more risk on attitude which gives a tailwind for tech.
