Payout Boost: BCE raises its dividend

Article Excerpt

BCE INC. $59 (Toronto symbol BCE; Income-Growth Payer Portfolio, Utilities sector; Shares outstanding: 870.7 million; Market cap: $51.4 billion; Dividend yield: 4.9%; Dividend Sustainability Rating: Highest; www.bce.ca) is Canada’s largest traditional telephone service provider, with 6.3 million customers in Ontario, Quebec and the Atlantic provinces. It also has 3.5 million high-speed Internet users and 2.7 million TV subscribers. In addition, the company sells wireless services to 8.5 million users across Canada, and owns TV and radio stations. Starting with the April 2017 payment, BCE will increase its quarterly payment by 5.1%, to $0.7175 a share from $0.6825. The new annual rate of $2.87 yields 4.9%. The company has now won the last of the regulatory approvals for its acquisition of Manitoba Telecom Services Inc. (Toronto symbol MBT). That utility has 1.3 million telephone and wireless customers in Manitoba. Manitoba Tel investors will receive cash and BCE shares for their holdings. In all, the deal is worth $3.9 billion, including Manitoba Tel’s debt of…