Q: I've held this stock for the longest time and it keeps going down ? I'm now down 28 % ! I've recently heard that they might be cutting their dividend and I'm not sure that I should keep hanging on ? What say you, sell or hold ?
5i Research Answer:
BCE has announced that it plans to reduce its dividend growth rate, but we would not expect it to cut its dividend. We think it will continue with its cost-cutting efforts, and if needed would sell assets to protect its dividend. We would not expect huge growth here, but lower interest rates should ultimately help the stock, and we would consider it a buy on more weakness for income investors.