BCE Inc (BCE.TO) announced a 5.0% increase in its cash dividend. The quarterly cash dividend will increase from C$0.65 to C$0.6825 per share and payable on Apr 15, 2016 to shareholders on record as of Mar 15, 2016.
BCE Inc is a Dividend Challenger and this is the 8th consecutive annual dividend increase. The annual dividend rate goes up from C$2.60 to C$2.73. Yield going forward based on today’s closing price is 4.75%.
BCE maintains the dividend payout ratio within its target policy range of 65% to 75% of free cash flow. The higher dividend for 2016 is fully supported by higher expected free cash flow generation driven by continued execution of Bell’s 6 Strategic Imperatives and growing financial contributions from all Bell business segments. Including today’s dividend increase announcement, BCE has increased its annual common share dividend 12 times in the past 7 years, representing an 87% increase.
Our portfolio consists of 40 shares of BCE Inc, which increases our annual dividend from C$104 to C$109.20, an increase of $5.20.