- Wealth Awesome
- Posts
- 1 Perfect Dividend Stock Down 34% to Buy and Hold Forever
1 Perfect Dividend Stock Down 34% to Buy and Hold Forever
BCE’s Dividend Yield Hits 9% — Time to Load Up?
Shayaan Rajan & Qayyum Rajan
September 23, 2025
In partnership with
With BCE trading near lows, here’s why investors are eyeing it as a top income play.
BCE Inc. (TSX: BCE)
🌐 Visit Website
Your Daily Edge in the Markets
Want to stay ahead of the markets without spending hours reading?
Elite Trade Club gives you the top stories, trends, and insights — all in one quick daily email.
It’s everything you need to know before the bell in under 5 minutes.
Join for free and get smarter about the markets every morning.
Major Developments This Week
BCE has had a rough year, with its stock trading near multi-year lows despite its position as one of Canada’s telecom giants. This week, BCE:
Saw further weakness in share price, down nearly 10% in the past month.
Continued investor concern around high debt loads and payout sustainability after prior dividend cuts.
Maintained focus on 5G expansion and media assets (including HBO and Starz licensing in Canada).
Key Metrics
Metric | Value |
|---|---|
Stock Price | C$31.90 (-0.31%) |
Market Cap | C$29.7B |
P/E (TTM) | 69.2× |
Forward P/E | 12.4× |
52-Week Range | C$28.73 – C$47.85 |
YTD Return | +1.3% |
Dividend Yield (Forward) | 5.5% |
Where the smartest investors start their day
The Alternative Investing Report (A.I.R.) helps you get smarter on alternative assets from crypto treasury companies to Pre-IPO venture secondaries to private credit and more.
Join 100,000+ investors to get the latest insights and trends driving private markets, a weekly investment pick from a notable investor, and bonus offers to join top private market platforms and managers. And it’s totally free.
Analyst Insights
Consensus Rating: HOLD
Average Target Price: C$35.35
Upside Potential: +10.83%
Rating | Count |
|---|---|
Strong Buy | 2 |
Buy | 2 |
Hold | 9 |
Sell | 1 |
Strong Sell | 2 |
Recent News
Dividend Concerns Resurface – Analysts continue to debate BCE’s dividend sustainability given its high payout ratio of 745.7%.
Telecom Pressure – Increased competition from Rogers and Telus adds pressure to BCE’s market share.
5G Rollout Progress – BCE highlighted ongoing investment in 5G infrastructure as part of its long-term growth strategy.
Growth Indicators
Growth Metric | BCE | Industry Avg. |
|---|---|---|
Sales Growth Next Year | +2.9% | +3.2% |
EPS Growth Next Year | -4.2% | +15.1% |
5-Year EPS Growth Est. | +0.7% | +11.1% |
Takeaway
BCE offers one of the highest dividend yields (5.5%) among Canadian blue chips, but its weak earnings outlook and unsustainable payout ratio raise red flags.
For income-focused investors, BCE remains a defensive telecom play—but patience is required as the stock faces both earnings headwinds and competitive pressures.
Fact-based news without bias awaits. Make 1440 your choice today.
Overwhelmed by biased news? Cut through the clutter and get straight facts with your daily 1440 digest. From politics to sports, join millions who start their day informed.
The Wealth Awesome Team
Reply