Faster networks spur BCE’s dividend

Article Excerpt

Canada and the U.K. are considering joining other members of the “Five Eyes” intelligence-sharing group (U.S., Australia and New Zealand) in banning equipment from China’s Huawei for their planned ultrafast 5G wireless networks. That could increase future costs for BCE, which has profited in the past few years on big investments in its wireless networks. However, Ottawa is unlikely to force the company to replace Huawei equipment inside its current 4G LTE systems. As well, the eventual rollout of 5G should also give BCE more room to keep increasing its dividend. BCE INC. $58 (Toronto symbol BCE; Income-Growth Portfolio, Utilities sector; Shares outstanding: 898.2 million; Market cap: $52.1 billion; Dividend yield: 5.5%; Dividend Sustainability Rating: Highest; www.bce.ca) is Canada’s largest traditional telephone service provider, with 3.0 million customers in Ontario, Quebec, Manitoba and the Atlantic provinces. The company also has 3.9 million high-speed Internet users and 2.9 million TV subscribers. Those businesses (called Wireline) supplied 53% of 2018 revenue. Originally founded as The Bell Telephone Co…