Q: Hello 5I.
I have a loss on BCE of about 30%.
Now I bought for the steady 7% div at the time and now am down a lot. Is there a stock with. Good future to switch too or just ride it out as it could recover in time and could be close to the bottom? Thanks.
I have a loss on BCE of about 30%.
Now I bought for the steady 7% div at the time and now am down a lot. Is there a stock with. Good future to switch too or just ride it out as it could recover in time and could be close to the bottom? Thanks.
5i Research Answer:
BCE holders need to be prepared for a possible dividend cut, but we think this is well priced in. If a tax loss can be used we are fine with a tax loss/re-buy strategy, but we would consider it a HOLD today on valuation, negative sentiment (it can only improve) and possible gains if its cost-cutting efforts are successful, over time.