BCE - BCE Inc.: Is This Succulent 7.9% Dividend Safe?

2024-03-12 15:53:49 ET

Summary

• BCE, a Canadian telecom giant, is projected to pay out more in dividends than it earns in 2024.
• The company's dividend is at risk of being cut due to its unsustainable payout ratio.
• However, I believe that BCE's dividend is safe in the long term, with potential for improvement in 2025 and beyond.

BCE ( BCE )( BCE:CA ) has been a consistent income provider for Canadian investors since it was established in the late-1800s. The future, however, isn't quite as rosy, with the company projected to pay out more than it earns in 2024. Will this translate into a dividend cut?

(BCE reports in CAD. All numbers are in CAD unless indicated otherwise)

Introduction

BCE can trace its history to 1880, just a few short years after Alexander Graham Bell invented the telephone. Bell received a Canadian patent for his invention and immediately transferred 75% to his father, Melville, who began the process of setting up a telephone company in Canada....

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