Marvin Samuel Tolentino Pineda
BCE Inc. (TSX:BCE:CA) (NYSE: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
BCE Makes It Official: Why The 56% Dividend Cut Is Good News (Rating Upgrade)
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.
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