Q: Hello,
It seems that BCE is taking a page out of the BNS book by purchasing a US asset and freezing their dividend.
In the case of BNS they enhanced their credibility, in my mind, and I bought more and it is up substantially - thank you.
In the BCE case, this stunt has undermined my faith in their judgement towards dividend holders.
How does any co., let alone a highly indebted co., operating in a very competitive environment sustain a 10% dividend?
They are in the doghouse now - if they bite the bullet and cut the dividend in half they save $2B p.a. to pay towards debt reduction.
I can't see any reason why not at this point.
It seems that BCE is taking a page out of the BNS book by purchasing a US asset and freezing their dividend.
In the case of BNS they enhanced their credibility, in my mind, and I bought more and it is up substantially - thank you.
In the BCE case, this stunt has undermined my faith in their judgement towards dividend holders.
How does any co., let alone a highly indebted co., operating in a very competitive environment sustain a 10% dividend?
They are in the doghouse now - if they bite the bullet and cut the dividend in half they save $2B p.a. to pay towards debt reduction.
I can't see any reason why not at this point.
5i Research Answer:
It can be debated; certainly after indicating a 'freeze' we think shareholders would...