BCE investors benefit in two ways

Article Excerpt

BCE, Canada’s largest and oldest telecommunication provider, remains a top choice for dividend-seeking investors. That’s mainly due to its strong share of the telecom market— which has high barriers to entry. The company is also close to completing a multi-year plan to build out its high-speed Internet and wireless networks. That will help BCE attract and retain more customers. Investors will also benefit as lower capital spending frees up more of the company’s cash for dividend increases. BCE INC. $64 is a buy. The company (Toronto symbol BCE; Income-Growth Portfolio, Utilities sector; Shares outstanding: 911.9 million; Market cap: $58.4 billion; Dividend yield: 6.0%; Dividend Sustainability Rating: Highest; www.bce.ca) is Canada’s largest traditional telephone service provider. It has 2.19 million residential customers in Ontario, Quebec, Manitoba and the Atlantic provinces. BCE also has 4.26 million high-speed Internet users and 2.75 million TV subscribers (satellite and fibre-optic). In addition, it sells wireless services to 12.4 million users across Canada. BCE has raised your dividend rate each year since 2008…