Bell Canada (BCE) Increased Dividends by 5%

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BCE reported its quarterly earnings yesterday and rewarded investors with a 5% dividend increase. This will boost my dividend income and further accelerate my compound growth. I reviewed Bell Canada not so long ago and if you want a deeper look at the company.

Here are the highlights from their news release:

  • Strong Adjusted net earnings attributable to common shareholders of $543 million; Adjusted EPS up 18% to $0.72 per share
  • Bell revenues up 1.0% on service revenue growth of 1.8%; EBITDA(1) growth of 6.4% is Bell’s best performance in more than 8 years
  • Bell Wireless operating revenues up 9.2%; EBITDA up 12.2%; EBITDA margins increase to over 40%
  • Market-leading wireless postpaid net additions of 80,648; smartphones represent 55% of gross postpaid activations; Bell to launch next-generation LTE wireless network in certain markets this year
  • Bell Wireline EBITDA growth of 4% driven by rigorous cost control; Fibe TV and Fibe Internet gain further traction; increased ARPU across residential services

So far these past months the Telecom Utilities have certainly been good to dividend investors. Not only do they have a good dividend yield, they have increased their dividends. It’s no wonder many of them are dividend aristocrats.

  • April 27, 2011 – Rogers Communication increased their dividends by 11%
  • May 5, 2011 – Telus increased their dividends by 4.8%
  • January 13, 2011 – Shaw Corporation increased their dividends by 5%
  • December 17, 2010 – AT&T increased their dividends by 2.4%

Readers: Are Telecoms part of your portfolio?

Disclosure: Long BCE, RCI.B, TSE:T and NYSE:T

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5 Responses to "Bell Canada (BCE) Increased Dividends by 5%"

  1. Unfortunately BCE is the only one I’ve got, but it’s treating me just fine 🙂 Loved the news. Surprised though – that is like the 3rd or 4th dividend increase in the last 12 months. That can’t keep going on…

    At some point, I’ll buy Rogers or Telus, likely the former because the price is much lower to get in.

  2. I own BCE since February 2010 (bought at 29$). I am very happy with this company.
    What is interesting is when I bought it, a lot of analyst had a hold on the stock and now that it is at 37-38$, it is rated as a buy.

    1. The Passive Income Earner · Edit

      Thanks for the comment!

      Royal Bank Analysts just gave BCE a price target of 40$. Let’s hope they are right and not just correcting since BCE has been going strong.

  3. BCE will be an interesting stock to watch once the feds change foreign ownership rules. With the colapse of the previous deal BCE has become stronger and more valuable and the best of the three to be taken over. My guess is between $50 and $55 a share.

    1. The Passive Income Earner · Edit

      Thanks for the comments! I started thinking about the foreign ownership and I have a post that would outline some of my thoughts. Please come back for a discussion once it goes live!


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