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Stock impact report

Analysts expect BCE to cut dividend this quarter as sector copes with tough pricing, subscriber trends [Globe and Mail, The (Toronto, Canada)]

BCE, Inc. (BCE) 
Last bce, inc. earnings: 2/6 07:00 am Check Earnings Report
US:NYSE Investor Relations: bce.ca/investors/investoroverview
Bell Canada parent BCE Inc. BCE-T is likely to cut its dividend this quarter as the sector continues to face headwinds to growth, according to several analysts. The widely-held stock has in recent quarters paid out more in dividends than the company has earned in free cash flow. The yield has remained at an uncommonly high level, suggesting many investors see the payout as unsustainable. BCE is due to report its first-quarter earnings on May 8, the same day as its annual shareholder meeting, and several analysts expect the company may take the action that many investors have long expected. In a note to investors Monday, Desjardins analyst Jerome Dubreuil said that a BCE dividend cut was a matter of “when, not if,” saying there is a “significant probability” of BCE cutting its dividend this quarter, and that he would view such a cut positively as a realignment of the company’s capital allocation strategy. He estimated that the company would require a cut of more than 50 per cent to Show less Read more
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