BCE offers one of the highest yields among major North American telecoms, backed by a business with recurring, subscription-like cash flows from wireless and fiber internet that are relatively insulated from economic cycles. The company’s pivot toward U.S. fiber expansion (Ziply Fiber) and AI data centre infrastructure gives it exposure to secular growth themes beyond legacy Canadian telecom.
Meanwhile, the stock trades at just 12.8 times the company’s forward earnings forecast.
BCE INC. (Toronto symbol BCE) is Canada’s largest telecommunications and media company, operating through Bell Canada (wireless, internet, TV) and Bell Media (Crave streaming, TSN, radio/TV networks).
The country’s largest telecom provider is now building a new datacentre near Regina, Saskatchewan that will handle advanced artificial intelligence (AI) programs. It expects to spend $1.7 billion on this project, which should begin operating in the first half of 2027.
BCE is also building or expanding three other datacentres (two in B.C. and one in Manitoba).
In all, these AI facilities will add $2 billion to its annual revenue by 2028.
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Ziply powers up BCE’s growth prospects
BCE continues to sign up new users for its wireless and Internet services. In the second quarter of 2026, its Canadian operations added 41,594 new wireless phone users under long-term contracts as well as 45,589 users of other mobile devices like tablets (all net of cancellations). BCE also added 11,601 net new users for its high-speed Internet service.
It ended the quarter with 13.77 million wireless users across Canada. It also has 4.47 million high-speed Internet users and 2.16 million fibre-optic TV subscribers; it provides traditional telephone service to 1.57 million residential customers in Ontario, Quebec, Manitoba and the Atlantic provinces. Other operations include TV and radio stations.
In August 2025, BCE purchased Ziply Fiber, which offers high-speed Internet access and telephone services through a fibre-optic network to residential and business customers in Washington State, Oregon, Idaho and Montana. It paid $3.64 billion U.S. in cash ($5.01 billion Canadian) and assumed $2.67 billion (Canadian) of Ziply’s debt.
As of June 30, 2026, Ziply had 445,525 Internet customers, 5,377 TV subscribers and 68,936 landline customers.
In the three months ended June 30, 2026, BCE’s revenue rose 1.5%, to $6.18 billion from $6.09 billion a year earlier. That beat the consensus forecast of $6.16 billion. Higher service revenue (up 4.3%) offset lower sales of phones and other hardware (down 16.3%).
Earnings before unusual items also improved 2.0%, to $604 million from $592 million, while earnings per share gained 3.2%, to $0.65 from $0.63. That topped the consensus estimate of $0.64 a share.
For all of 2026, BCE expects its revenue will rise between 1% and 5%. However, due to higher depreciation and interest charges, earnings per share will probably decline between 5% and 11%. Using the midpoint of that range, the company will probably earn $2.58 a share. The stock trades at an attractive 12.8 times that estimate.
The current dividend looks safe and yields a solid 5.3%.
Recommendation in Dividend Advisor: BCE Inc. is a buy.
