BCE Inc Dividend Increase

BCE Inc

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.

BCE Inc (BCE) Dividend Increase

BCE Inc
BCE Inc (BCE) announced that it will be raising its dividends by 5.3% from an annual dividend of $2.47 to $2.60 effective with BCE’s Q1 2015 dividend, payable on April 15, 2015. The record date is close of business day Mar 16, 2015. This is BCE’s 11th increase to its annual common share dividend, representing a 78% increase, in the past 6 years. With this increase, BCE will maintain the dividend payout ratio within its target policy range of 65% to 75% of free cash flow.

From the earnings release statement:

  • Net earnings attributable to common shareholders of $542 million, up 9.5%; Adjusted net earnings grow 13% to $610 million; Adjusted EPS of $0.72, up 2.9%
  • 10.6% higher Bell Wireless Adjusted EBITDA driven by accelerated revenue growth of 9.6% on 5.5% increase in blended ARPU
  • Total BCE wireless postpaid net customer activations in Q4 of 118,120
  • Second consecutive quarter of positive Bell Wireline Adjusted EBITDA growth, up 2.0%
  • Activated 76,074 net new BCE IPTV customers and 52,010 net new BCE Internet customers as IPTV fibre footprint expanded to more than 6 million customer locations
  • Free cash flow grows 23.6% to $833 million; full-year 2014 free cash flow up 6.7%
  • Bell Media maintains leading TV audience levels and ratings as TSN and RDS affirm their position as Canada’s top specialty channels
  • 2015 outlook builds on positive operating momentum and execution of Strategic Imperatives, supporting dividend increase and significant capital investment

Financially, we enjoyed a successful 2014, comfortably achieving all our financial guidance targets for the year. Our consistent performance delivery, year after year, shows the strength of the business model Bell has built around our 6 Strategic Imperatives. While the communications industry is marked by intense competition and dynamic change, we have leveraged our business model to produce results consistently at or above expectations,” said Siim Vanaselja, Chief Financial Officer for BCE and Bell Canada. “Going into 2015, BCE’s operating momentum and financial foundation is strong. Our financial targets for this year reflect our expectation for continued strong Wireless segment profitability, positive growth in Wireline segment performance, as well as healthy earnings and free cash flow growth from operations to support our substantial capital investment in strategic network infrastructure and a higher BCE common share dividend for 2015.

My portfolio consists of 40 shares of BCE, which increases my annual dividends from $98.80 to $104.00, an increase of $5.20.

Further reading: Read my dividend stock analysis of BCE here.

BCE Inc – A Cash Flow Machine That Belongs In Your Portfolio

BCE Inc

BCE Inc (BCE) is Canada’s largest communications company providing communication solutions to residential, business and wholesale customers under the Bell Canada and Bell Aliant brands. BCE Inc is a well-diversified communications and media giant in the Canadian economy, part of the S&P/TSX 60 index. The company has a long history of rewarding shareholders and is committed to a dividend growth model and has confirmed that they intend to payout 65%-75% of free cash flow. However, the current EPS payout ratio remains high at over 90%. BCE cut its dividends in 2008 and started growing them aggressively since. While the current 5-yr dividend growth rate stands at 26.1%, the growth in dividends is expected to slow down to more manageable levels. The company has been focusing on strategically growing the wireless and media business segments and recently took Bell Aliant private in a $3.95B deal, which gives them a solid foothold in the Atlantic provinces.

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The Bright Future of Data Pipes

The rise of smart-devices has led to a tremendous growth in data over the last decade, but is expected to rise exponentially going forward. The push for smart devices including phones, tablets, wearables, cars and Internet-of-things has resulted in data moving to the cloud for better synchronization, storage and analysis. The common denominators that stand to benefit from the need for infrastructure support for communication includes cable,  internet and wireless service providers.

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BCE Inc (BCE) Dividend Increase

Another pay raise! BCE Inc (TSE: BCE) announced that it will be raising its dividends by 6.0% from an annual dividend of $2.33 to $2.47 effective BCE’s Q1 2014 dividend, payable on April 15, 2014. The record date is close of business day Mar 14, 2014. This is BCE’s 10th increase in the past 5 years. This dividend increase comes as a bit of surprise as BCE was originally expected to announce the dividend hike in March.
BCE’s dividend increase for 2014 comes supported by a higher expected free cash flow generation and a positive business outlook for 2014. The dividend increase maintains a dividend payout at the mid-point of a target policy of 65% to 75% of free cash flow.
As I pointed out in my analysis, BCE has been growing its media and entertainment sector by leaps and bounds with lots of acquisitions. My portfolio consists of 40 shares of BCE, which translates to a dividend raise from $93.20 to $98.80 annually. My yield-on-cost is now 5.62%.