RCI.B:CC - BCE Makes It Official: Why The 56% Dividend Cut Is Good News (Rating Upgrade)

2025-05-08 14:08:40 ET

Summary

• BCE Inc. has cut its dividend by 56%, reducing the annual payout to $1.75 per share, to address its high debt levels.
• The company is focusing on U.S. market expansion, particularly through its acquisition of Ziply, which offers higher growth potential and margins.
• BCE has partnered with PSP Investments to manage debt from the Ziply acquisition, allowing BCE to not consolidate Ziply's debt on its balance sheet.
• The dividend cut enables BCE to focus on debt repayment and improving fundamentals, with a target to reduce its debt-to-EBITDA ratio to 3.0x by 2030.

BCE Inc. ( BCE:CA ) ( BCE ) has finally done the inevitable and cut its dividend , slashing the annual payout by 56% to $1.75 per share. It's a positive move, but is it enough to get people excited again?

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

Introduction

BCE is one of Canada's most iconic companies, and it has been a core holding for thousands of Canadian dividend investors for decades now....

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