When I write about BCE Inc. (TSX:BCE)(NYSE:BCE), I tend to focus on the company's dividend due to its safety and long-term growth trajectory.
These are two factors I really like with most telecommunications and utilities players, particularly in this market. Most companies are at least leaving the door open to potentially cutting their dividends, as cash flow concerns become ever more imminent by the day. However, BCE’s CEO has come out and said there will be no change to the company's dividend policy at this time, (at the time of writing).
I’m not saying it could never happen, as we've seen companies cut dividends lately that have vowed to keep their distributions, no matter what. That said, BCE is one of the safer dividends I can think about there.
BCE is a company I'd recommend income-seeking investors have a good gander at right now, as yields for high-quality blue-chip telecom players like BCE rarely stay at this elevated level for long (though we are in exceptional circumstances now).
I do expect interest rates to stay low for at least the next decade, as I view deflation as more of a risk than inflation right now, so companies like BCE with a 5%+ dividend should certainly outperform most income-generating investments with similar risk profiles over this time frame,
The long-term secular growth trend of 5G, which is only just beginning, will not be stalled in any way by this pandemic. If anything, 5G might be sped up. Therefore, BCE's dividend has all the fundamental markers one would want, making BCE a great choice in my books for dividend pick.
Invest wisely, my friends.
