Topic: How To Invest

Q: Hi, Pat. I know BCE has been a long-time recommendation for TSI, and I still hold it despite its recent performance. Is it still a buy?

Article Excerpt

A: BCE Inc., $34.55, Toronto symbol BCE; (Shares outstanding: 912.3 million; Market cap: $31.3 billion; TSINetwork Rating: Above Average;  www.bce.ca) remains a buy for long-term gains and income. Canada’s largest traditional telephone service provider also offers wireless services and high-speed Internet access. That’s in addition to owning TV and radio stations. The stock is down on concerns that increasing competition will slow demand for its wireless and other telecom services. Weak advertising revenue is also hurting its media division. Investors are also concerned over BCE’s new growth strategy. In November 2024, the company announced that it is buying Ziply Fiber, based in Everett, Washington. Through its through fibre-optic network, the privately held firm offers high-speed Internet access and telephone services to residential and business customers in Washington State, Oregon, Idaho and Montana. BCE will pay $3.65 billion U.S. in cash (about $5 billion Canadian) for this business and assume $2 billion (Canadian) of Ziply’s debt. BCE expects to complete the transaction in the…