I suggest buying a new position in BCE (BCE) at the market for your Dynamic Income Portfolio; BCE is the largest Canadian telecommunications and media company, asserts Mike Larson, editor of Safe Money Report — and a participant in The MoneyShow Las Vegas on May 9-11.
Based in the Montreal, it sells wireless, wired, internet and television services. As of year-end 2021, it had 9.5 million mobile phone subscribers and 3.9 million fiber optic, DSL and wireless-to-the-premises high-speed internet customers.
The company also operates 35 traditional television stations, 27 specialty channels and 109 licensed radio stations, as well as video-on-demand services like Crave.
For full-year 2021, BCE reported a 6% rise in adjusted earnings to $2.9 billion, or $3.19 per share. Sales rose 2.5% to $23.4 billion. The company also forecast strong free cash-flow growth for 2022.
So, what about income? Well, BCE paid a dividend of 72 cents in the most recent quarter. That was good for an indicated yield of 5.1%, almost quadruple the 1.3% yield on the SPDR S&P 500 ETF (SPY). BCE also projected a 5.1% year-over-year dividend increase for 2022.
Our Weiss Ratings system has graded BCE as a “Buy” since August 2021. Plus, the stock broke out to the upside in the last month.
Finally, we’re seeing relatively strong performance from Canadian markets and the Canadian economy. GDP there grew an annualized 6.7% in Q4 2021.
With the nation’s heavy exposure to commodity- and resource-oriented industries, that should continue in this phase of the economic cycle. That makes BCE a solid play, especially because you can trade BCE shares on the NYSE just like any other stock.
