Q: Good morning,
I can’t believe I am asking another question on BCE, but here we go.
The ~10% move lower over the last week….In your opinion is this year end tax loss selling capitulation, or do you think the market may be sensing a dividend cut?
Thanks as always and Happy Holidays.
I can’t believe I am asking another question on BCE, but here we go.
The ~10% move lower over the last week….In your opinion is this year end tax loss selling capitulation, or do you think the market may be sensing a dividend cut?
Thanks as always and Happy Holidays.
5i Research Answer:
Investors continue to 'expect' a dividend cut but the company has, so far, dug in its heels. It was ex-dividend on December 16 so that accounts for some of the drop this week. To us, with a volume spike yesterday, it looks like a combination of tax loss and 'throw in the towel I am sick of this' trading.