BCE Inc.: I'm Still Bearish, Consider Quebecor Instead
Summary
- BCE's high debt and Ziply capex needs are likely to force a dividend cut within 12–18 months, negatively impacting share prices.
- BCE's capex situation should improve in 2025, but is likely to get worse again in 2026 and 2027.
- BCE's valuation is attractive, but debt concerns and the need for further asset sales make it a risky investment.
- Quebecor offers a more sustainable dividend, better growth prospects, and a stronger balance sheet, making it a superior alternative to BCE.
Analyst’s Disclosure:I/we have a beneficial long position in the shares of QBR.B:CA either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
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