Q: hi,
I own both BCE and T - both down a bit now. can I get your latest thoughts on these 2 as a buy, sell, or hold. all else being equal, do you see the purchase of assets in Pacific Northwest USA as good for growth, eventually. and what do you see as the risk for a dividend cut for BCE and Telus? finally, if selling, where would you suggest to look elsewhere for some growth ( slightly beating inflation ) and good dividend yield?
cheers, Chris
I own both BCE and T - both down a bit now. can I get your latest thoughts on these 2 as a buy, sell, or hold. all else being equal, do you see the purchase of assets in Pacific Northwest USA as good for growth, eventually. and what do you see as the risk for a dividend cut for BCE and Telus? finally, if selling, where would you suggest to look elsewhere for some growth ( slightly beating inflation ) and good dividend yield?
cheers, Chris
5i Research Answer:
We think BCE can be a slow, accumulate buy into any further weakness. We have posted lots of commentary on it recently, but the key point is we do not think the dividend will be cut. Sentiment is so bad that any positive news should support the stock. Telus just raised its dividend, and we think it is likely to do better in the short/medium term. We would be OK buying it now for income, but see no big rush on this. Some alternatives: ENB, SLF, IFC, FTS