BCE (TSX:BCE)(NYSE:BCE) stock has climbed 5.2% in 2019 as of close on January 30. Shares are still down 0.8% year-over-year, but BCE’s dividend has made up that ground for shareholders.
With central banks looking to press pause on the rate tightening path in 2019, telecoms and other income vehicles that found favour over the past decade should again garner interest.
BCE is expected to release its fourth-quarter and full-year results in early February. In the third quarter the company added 178,000 wireless subscribers which was a Q3 record.
BCE saw net income rise to $814 million or $0.90 per share compared to $803 million or $0.90 in the prior year. Its investment strategy and push into the Toronto market appears to have paid off if the third-quarter is an indication going forward.
BCE last paid out a quarterly dividend of $0.755 per share. This represents an attractive 5.3% yield. BCE has achieved dividend-growth for 10 consecutive years after hiking again in 2018. The stock had an RSI of 65 as of close on January 30.
This indicates that shares are just outside of overbought territory as we head into February.
Bond yields look set to continue their decline into 2019 with central banks striking a dovish tone. BCE and other telecom stocks will benefit from this dip as income-focused investors again turn to equities in order to chase higher yields.
BCE boasts a yield over 5% and a wide economic moat. It is a nice option for income investors heading into February.
