Blenderboy

Is BCE's Dividend Safe?

Inveseting in BCE is investing in George Cope and his team. As a manager at Telus he has an admirable record.bu

They just sold unsecured bonds in the mid 5% range. The dividend is paying out 6.4%. Amazing in these times you can raise unsecured money at lower rates than your recently increased dividend. So, sell bonds, buy stock and pocket the spread while at the same time reducing your shares outstanding which means you can show EPS growth. That's smart short term. Long term this is a cost reduction, slow revenue grower. Dividend is safe. This looks like a gimme 10% this year. I'll take it!