It’s a dangerous time for dividend investors as companies are cutting or suspending dividend payments from all corners. The coronavirus pandemic has put companies into conservation mode and not having to pay dividends is a way to help save as much cash as possible during what’s going to be a very tumultuous time.
Restaurants and companies in oil and gas are some of the highest-risk investments out there right now.
But there are still good deals available out there. BCE Inc (TSX:BCE)(NYSE:BCE) is an industry lead in the telecom industry in Canada and it may be one of the safer investments you can still pick up today.
The company’s business still looks sound and people are likely to spend more time on their phones and online now that they’re stuck at home. So for BCE, the coronavirus pandemic may not have as an adverse impact on its business as it may have on other companies.
Currently, BCE pays its shareholders a quarterly dividend of $0.8325. On an annual basis, that yields about 5.9%. That’s a terrific payout for a stock that normally increases its payouts every year.
Shares of BCE are down a relatively modest 6% so far in 2020. That’s nowhere near as bad as the TSX has been, falling 24% over the same period.
With an average beta of about 0.5, BCE’s normally a very stable investment and it could be a good one to add to your portfolio to ride out these tough times and still earn a payout. BCE may not get much cheaper than where it is today.
