Q: Every time a company cuts their dividend, the stock suffers.....BCE should be no different and it becomes dead money for awhile..at what support price should I start a new position??...
5i Research Answer:
Note BCE has not cut the dividend. But it is speculated. The price support may depend on whether it does cut, and to what degree. But at a 10.56% dividend right now, we would expect yield buyers to support the stock in the low $36 range. We would perhaps expect a decline of $2 to $3 with an actual cut, but that might be a short term decline.