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  5. BCE: Do you feel that BCE is near bottom? [BCE Inc.]
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Investment Q&A

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Q: Do you feel that BCE is near bottom? It appears for the past two weeks the stock is trending sideways.
What is the risk of cutting the dividend?
Are they making progress on reducing debt and expenses?
Is revenue staying constant, growing or falling based on quarterly reports for past two years?
What is managing forecasting going forward?

Would buy, hold or sell at this point and why
Asked by David on November 20, 2024
5i Research Answer:

We think BCE will slowly recover, over time. Sentiment is so negative right now, but as interest rates decline and as the anger at the 'no dividend growth' plans from the company fades, we think it moves up over time. The dividend is not entirely safe. The company is struggling and needs to manage debt. But we do not believe it will be cut in the short/medium term. It was making good progress on debt, and then made a big acquisition, this caused a lot of confusion with investors and hurt the stock even more. Revenue has been basically flat for four or five years. Very little growth is expected in the next two years. We would view it as a very slow accumulation buy for income if it declines further. We see no rush here but would be fairly surprised if it weakens a lot more. But it needs a catalyst to show big improvement. Lower interest rates will help.