5G will support this dividend

Article Excerpt

BCE INC. $64 is your #1 Income Buy for 2022. The company (Toronto symbol BCE; Conservative Growth and Income Portfolios, Utilities sector; Shares outstanding: 911.8 million; Market cap: $58.4 billion; Price-to-sales ratio: 2.4; Dividend yield: 5.8%; TSINetwork Rating: Above Average; www.bce.ca) is Canada’s largest traditional telephone service provider. It also sells wireless services and owns TV and radio stations. BCE raised your quarterly dividend in April 2022 by 5.1%. The new annual rate of $3.68 yields a high 5.8%. The stock is down 3% since the start of 2022. That’s partly due because rising interest rates increase the appeal of bonds to investors who would otherwise prefer high-yielding utility stocks. However, the launch of new ultrafast 5G wireless service should spur more of BCE’s customers to upgrade their service. Moreover, the stock trades at an attractive 18.8 times BCE’s projected 2022 earnings of $3.41 a share. BCE is your #1 Income Buy for 2022. 2022…