Q: With BCE’s dividend yield now at 10% following a sharp drop in its share price, do you think the management might decide to cut the dividend soon? I’d appreciate your thoughts on this.
5i Research Answer:
We think if it was going to, the company would have done it by now, with all the recent announcements. Most companies take the 'kitchen sink' approach to bad news. Considering BCE's recent comments on the dividend, we would not see it happening in the short to medium term.