BCE

[Carvher]

BCE is a regulated utility guaranteed a rate of return. So, is the regulated return inadequate?

No. Doesn't work like that. It just gives them regulated framework which gives them a pretty good idea what their revenue will be.
Simply put, dividends are paid from free cash flow (think profits but it can get complicated based on numerous things).
They have alot of debt which is perfectly normal for a telco but the cost to service that debt can rise considerably as interest rates rise. Also, recession can cut into revenue and therefore income.
I'm not saying they will cut the dividend (who knows?)
Keep in mind they also have massive capital expenditures that they could cut back on to increase cash flow. My guess is they will do everything possible to not cut dividend.
I'm sure somebody on here knows more about them than I do. Would welcome more info from other members.

 

[Darts]

No. Doesn't work like that. It just gives them regulated framework which gives them a pretty good idea what their revenue will be.
Simply put, dividends are paid from free cash flow (think profits but it can get complicated based on numerous things).
They have alot of debt which is perfectly normal for a telco but the cost to service that debt can rise considerably as interest rates rise. Also, recession can cut into revenue and therefore income.
I'm not saying they will cut the dividend (who knows?)
Keep in mind they also have massive capital expenditures that they could cut back on to increase cash flow. My guess is they will do everything possible to not cut dividend.
I'm sure somebody on here knows more about them than I do. Would welcome more info from other members.

I remember back when they created BCE Enterprise (check fact) and blew their brains out getting involved in a trust company and real estate. I think (hope) they learned their lesson and stuck to stuff where they have expertise.

Sad tale when they spun-off NORTEL and that company blew up. My broker had a couple of NORTEL retirees who took a 30% (if I remember correctly) haircut on their pension.

 

[Gators]

All beaten down telecos, REITS, Utility . I expect all do good short time. Oi is dropping,

 

[Carvher]

All beaten down telecos, REITS, Utility . I expect all do good short time. Oi is dropping,

Yeah, it's good to keep an eye in these sectors but be careful with Reits.
Even if rates come down a little in 24, their debt will still be higher than it is now when it's renewed. I guess same could be said for other sectors.
You need to do a dive into a companies debt.
I still like tech alot more. No debt, lots of growth, decreasing rates will spur a more risk on attitude which gives a tailwind for tech.

 

[Darts]

All beaten down telecos, REITS, Utility . I expect all do good short time. Oi is dropping,

I would be careful with office space REITs (if there are still any). Seem like many people prefer to work from home or the country cottage (like my rich broker friend with the beautiful wife).

Question: How certain are we that interest rates will drop in 24? In my lifetime I've seen rates in double digits and life still went on.

 

[Gators]

I would be careful with office space REITs (if there are still any). Seem like many people prefer to work from home or the country cottage (like my rich broker friend with the beautiful wife).

Question: How certain are we that interest rates will drop in 24? In my lifetime I've seen rates in double digits and life still went on.

I have seen rate close to 20% 1980 and life went on. It Depends what is your NAV.

 

[John_Jacob]

Sad tale when they spun-off NORTEL and that company blew up. My broker had a couple of NORTEL retirees who took a 30% (if I remember correctly) haircut on their pension.

yup, good times

 

[badmuss05]

Did not expect to come on this site and talk about stocks lol. I started an entry position with BCE and T last week taking advantage of the discount as it hit my target price.
After taking a big L in weed and buying meme stocks I slowly transitioned into blue chips / eft stocks for a better night sleep and now im slowly dipping my toes with a dividend portfolio.

 

[John_Jacob]

Did not expect to come on this site and talk about stocks lol. I started an entry position with BCE and T last week taking advantage of the discount as it hit my target price.
After taking a big L in weed and buying meme stocks I slowly transitioned into blue chips / eft stocks for a better night sleep and now im slowly dipping my toes with a dividend portfolio.

Assuming your age and income level, blue chip dividends are great for tax-advantaged income. With hopefully-safe yields, these are magical times.

 

[explorerzip]

BCE is a regulated utility guaranteed a rate of return. So, is the regulated return inadequate?

Having a regulated business does not guarantee anything. The regulations dictate the rules and standards a business must follow. In BCE's case, it has to comply with TV and radio broadcast standards, wireless spectrum, etc so their equipment does not cause interference. It also has to comply with consumer protection rules like the Wireless Code, which dictates things handling complaints, how contracts are worded, etc.

You must be thinking of a Guaranteed Investment Certificate (GIC). The amount you invest including the interest in a GIC is guaranteed up to $100K by the Canadian Deposit Insurance Corporation.

BCE's biggest challenges are its legacy TV and radio businesses. TV and radio shows are very expensive to produce. Ad revenue in those business have and will continue to fall as people dump their TV packages and turn to streaming. Rogers has a simlar problem with legacy media.

 

[Candymancan]

I like diversification. I go for ETF's especially yield focus.

 

[angrymime666]

Regarding "BCE is a regulated utility guaranteed a rate of return ", I think this is something that hasn't been really true for a decade or so. This was very true with land lines, limited wireless and when LD was chargeable. Not so much these days with so many other alternatives to their 3 core business. Wireless, Wireline & Media - all things the internet continually disrupts. I think BCE's advantage is the, current but could change, oligopoly that exists in Canadian-telecom.

That being said, I'm holding off on investing in telecom these days, despite being beaten down. Pure opinion but I think this sector could be beaten down further.

Could you provide your rational for the beat down. I'm curious as I have my own.

My 2 cents,,,

The bigger the population grows the bigger the customer base. Increasing pop year after year.

Not a fan of the media section since it's a slowly dying sector when you can see how big media has lost credibility and the independent vloggers can build their brand. Web based entertainment etc.

I think bce will continue to grow, but nothing exceptional. Consistent growth with occasional stock highs, dependent on the emotional reactions of investors.

 

[Ceiling Cat]

BCE may be due for a short term rise from $51.41 ( Dec 23 ).

 

[Ceiling Cat]

BCE may be due for a short term rise from $51.41 ( Dec 23 ).

BCE hit $54.53 + 6.06% ( Jan 5 )

 

[Ceiling Cat]

BCE is a slow stock, but it will keep going up from $54.62 @ close Jan 8.

 

[Ceiling Cat]

BCE hit 55.66 today but it will move down before it goes higher, but will continue to go higher.

 

[Gators]

BCE hit 55.66 today but it will move down before it goes higher, but will continue to go higher.

I was going to buy today. I do recommed looking at CPX.

 

[Ceiling Cat]

BCE is not the type of stock I like to track or invest in. I like stocks that I can pounce on, quick as a cat. As I predicted ( post 38 ) It has moved down and then up. I think that it will again move down before it moves up and higher. Maybe one or two times. There may be an extreme move up or down soon. I can only tell you the direction just before it happens.
These things can happen at any time

The indications for CPX are very similar for now. It will move down before it moves higher than $37.78

just own too much of it already

There is never too much. If you have a large amount, you can sell on the highs and buy on the dips.

 

[Ceiling Cat]

BCE has gone down to $55.62, it looks like it has the power to rise from here. CPX did a single SOG and looks like it need some recovery time.

 

[Carvher]

I was going to buy today. I do recommed looking at CPX.

Been watching CPX, time to buy was last week but I didn't pull the trigger.