Investment Q&A

Q: Does the decline in Telus and Bell have any similarities to the decline in AT&T and Verizon about 6 months ago? I note that the US telecoms staged a nice comeback since. Would you expect the same or are the stories different?

Q: I believe BCE cut their dividend by 50% in 2008 during the financial crisis and restored it in 2009 the following year. In your opinion, is the company in the same financial condition as it was during the financial crisis of 2008 which may warrant a reduction in dividend? It looks like Telus also reduced their dividend during this crisis. Can you comment on why the management teams may have acted differently with their investor dividends. I would appreciate your thoughts.

Q: Hi Peter, I'm a pensioner and hold BCE in my RRSP account mainly for the dividend with an average cost of 49.25. Why such a downturn and would you continue to hold for the dividend or is there a chance the dividend could be lowered or cut. I thought this was one of those buy and forget about stocks. Thanks

Q: Good morning,

Thinking of selling BCE for a capital loss, and replacing with FTS. Hold FTS until ex-dividend date of May 16th, and then buy back BCE in time for their June ex-dividend date.

Reasonable strategy if no immediate near term price catalysts - good or bad - for either BCE/FTS?

Q: I have a fairly large position in BCE, about double my usual size. Would you continue to hold? I am considering switching half the position into CGI.

Q: Can you please comment on how BCE is progressing with its long term goals.
Also, can you please compare its EBITDA for 2023 to its past history. Are things getting better or worse ? Thank you very much

Q: Currently down 15% on both. Make any sense to take a loss On tellus to double down On bell? Or hold or better some other suggestions for more recovery potential.?Tks. Larry

Q: Good morning,

Perhaps I am over-thinking this, and I know there have been a lot of BCE-related questions recently. But I am starting to hear more regarding potential retaliatory measures by the Federal Government and the CRTC in response to BCE's recent layoffs, station closings and general expenditure cuts.

I wonder if you share this view, and if so, have a view as to what might be possible. Personally I find it somewhat "distressing" and distasteful that this is happening, as any retaliation will clearly impact longer-term price directionality and have significant dividend repercussions.

Thanks as always.

Q: I own both bell and telus. I would like to sell one for a tax loss but am not sure which one to sell. Which one has the most potential grown, preservation of its dividend, and safety?
thanks

Q: why doesn't the whole telecom sector not do great with the rates so high and no completion ?
thx James

Q: I'm thinking of journaling the above inter-listed securities over to my US RSP account as a currency play (I'm expecting CAD weakness vs USD over next 1-2 years). Other than CAD dividend exchange rate fees, are there other caveats to be aware of with any of these securities specific to their US listings? I.e. liquidity on NYSE? Thank you.

Q: Thank you sharing your insight answering my most recent questions.

BCE is getting quite a working over and I have a few questions (please deduct as necessary).

BCE next reports on May 2 (I believe) and +ive perf. is likely essential

1) How accurate has BCE been on its reporting historically?

2) How far in advance of the "official" report do they provide guidance or their anticipated performance?

3) What would some early indicators of a dividend cut or worse be? (Prior to May 2).

I suppose Telus would be subject to similar forces and in the same boat.

Thank you

Q: Lots of questions here -
What is the timeline for the cost cutting measures?
What are the metrics that describe the potential financial impact of the measures?
How would you rate the proposed measures are adequate to turn things around (low chance = 1, high = 5)?
All else equal, can you guess how BCE's stock price could go up with a drop in BoC interest rates, say by 0.5%, 1%, 2%, 3%?
Thanks a lot. Your guidance is superb.

Q: In addition to several recent Q's / A's concerning BCE, I note that yesterday, 14 March, was also ex-dividend date which might have added to the pain; some owners may have picked this date to lock in a tax loss and intend on repurchasing in 30 days.
SP

Q: If BCE profit is dropping and is laying people off, why did they raise the dividend today? ( according to tmx money) Does this show they are confident in the future ?

Q: Hello. What caused the sudden drop in the price of BCE? Thanks

Q: Park Lawn, BCE and BEP taking a tidy beating in the wife’s income portfolio. While we enjoy the divs, the red ink is off-putting to be fair.

We are a few years away from drawing on her account, so at what point would you consider averaging down on these. There is a fairly large cash balance waiting to be deployed.

Q: While you may not see much growth in Bell for the near future, is this not a rare opportunity for a dividend/income investor to lock in an 8%+ dividend in a secure company?

Am I missing something?

Q: Hi, BCE shares have been hammered for past few weeks with stock making new 52 weeks lows everyday, with market fearing that company could cut or not be able to keep pace with dividend increases, due to pressure on its cash flow. Company has a large debt load and yesterday the Rating Agency placed BCE on a negative watch, which makes it more expensive for BCE to borrow. Pay out ratio is already over 100% of its earnings. Current dividend yield of 8.5% could be viewed as flashing warning signals.

BCE is held in 5i Income Portfolio and generally rated well, per your recent comments. Are you still comfortable to hold it in Income Portfolio ? Also, if income is not the primary objective for an investor, is it not prudent to liquidate even at current price and move on to other opportunities with lower dividend and better growth?

Thank You

Q: Lots of comments around that there may not be a lot of upside to the Telcos. And we know that covererd call etfs`s also have built-in limited upside. Any thoughts on swapping Telus for a covered call etf for income?