BCE offers growth—and a 6% yield

Article Excerpt

BCE is a high-quality telecom, and its businesses were well-prepared to withstand COVID-19 slowdowns. Longer term, its newly launched ultrafast 5G wireless networks will provide strong growth and boost cash flow to pay for dividend increases. BCE INC., $61.50, is a buy. The company (Toronto symbol BCE; Shares outstanding: 911.9 million; Market cap: $56.4 billion; TSINetwork Rating: Above Average; Dividend yield: 6.0%) is Canada’s largest traditional telephone service provider. It also offers wireless services and high-speed Internet access. That’s in addition to owning TV and radio stations. The company continues to benefit from strong demand for new mobile phones and high-speed Internet services. As well, the full return of live sports has boosted advertising revenue at its media operations. Those gains offset lower sales of wireless and other equipment to businesses. In the quarter ended September 30, 2022, revenue rose 3.2%, to $6.02 billion from $5.84 billion a year earlier. Despite significant costs related to storms and inflationary pressures, the company’s per-share earnings in the quarter,…