BCE has a relatively short 3-year track record of Dividend Growth
BCE Inc., a telecommunications and media company, provides wireless, wireline, Internet, and television (TV) services to residential, business, and wholesale customers in Canada. It operates in three segments: Bell Wireless, Bell Wireline, and Bell Media.
I have other holdings in the telecommunications sector. These include AT&T (T), Verizon (VZ) and Telus (TU). BCE is my smallest holding in this category and it is a relatively new addition.
The following are some illustrations worthy of consideration. As in past posts, I inserted some arrows to show what I look for when buying a dividend-producing investment.
I don’t worry about the higher payout ratio for telecoms and utilities. That is just the way it is. More of the earnings are paid to the shareholders.
Seeking Alpha also provides dividend growth estimates. These are better called guestimates. One ETF that holds shares of stocks like BCE, TU and T is TDIV. I don’t recommend TDIV because the expense ratio is a hefty 0.50% and the yield is only 2.26%. However, TDIV does have a very impressive 5-year return from a growth perspective. That is due to some of the go-go stocks it holds, including Apple and Microsoft. It isn’t a pure telecom ETF.