Recent Buy – BCE

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My first purchase for 2019. After my recent sale of Kirkland Lake Gold (KL.TO), my cash position has increased substantially and I decided that I could use some of those funds invested and reap dividends while I play the waiting game.

I was looking for a low-beta utility style investment for this iteration. My utility sector exposure was already high enough, so I decided to add to my Communication Services sector instead. I added to my BCE Inc (BCE.TO) position with 50 shares @ $55.50. The stock currently yields 5.4%, thus adding $151.00 to my annual dividend income.

The current valuation looks ok and doesn’t really indicate a screaming buy. But as we know, telco in Canada have a stranglehold on their customers, with minimal competition. Prices are expected to go up again this month padding shareholder’s pockets. This should result in incremental increase in revenue & earnings going forward — so, business as usual.

BCE Inc usually announces a dividend raise in February, and the last few raises have been an average of ~5%, so I look forward to seeing a nice little bump added with this purchase and the next raise.

I will also earmark 25 shares from this purchase for Baby R2R’s Nest Egg portfolio. This will diversify her portfolio from the current concentration in financials & basic materials sector.

Full Disclosure: Long KL.TO & BCE.TO. Our full list of holdings is available here.

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