Growth Slump Has Analysts Questioning BCE’s Dividend Strategy
- Company has long streak of raising payout at least 5% a year
- Dividend is now higher than earnings; stock yields almost 7%
Photographer: Brent Lewin/Bloomberg
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Telecommunications company BCE Inc. is a favorite of income-seeking investors in Canada because, for about 15 years, it has delivered annual dividend hikes of 5% or more. But the streak may be about to end.
Some analysts say it’s time for the company to become less generous. BCE faces several billion dollars in debt refinancing needs over the next few years, and competition is increasing after rival Quebecor Inc. made a major acquisition.