BCE Inc. (TSX:BCE)(NYSE:BCE), a stalwart in the Canadian telecommunications landscape, is one of the top dividend stocks for investors to own on the TSX. With a dividend yield of 7.5%, investors can secure a great payout from one of Canada’s most established businesses.
BCE, or Bell Canada Enterprises, operates in a sector characterized by high barriers to entry, which provides a degree of protection against new competitors. Its diversified business portfolio spans across telecommunications services, including wireless, wireline, internet, and TV, and media holdings. This diversification not only stabilizes revenue streams but also cushions the company against sector-specific downturns.
A key aspect of BCE’s appeal as a dividend stock is its financial stability. The company has consistently demonstrated robust financial health, underlined by steady cash flows from its wide customer base. In the trailing 12 months, the company has earned a profit of $2.2 billion on revenue totaling $24.6 billion, for a solid profit margin of just under 9%.
Despite its current focus on dividends, BCE is not complacent about growth. The company continues to invest in expanding its network infrastructure, including the rollout of fiber optic and 5G technologies, which are crucial for future growth in the telecom sector. BCE’s commitment to technological advancement ensures it remains competitive and well-positioned to capitalize on future telecommunications trends.
BCE is suitable for investors seeking a blend of income and stability. Its high dividend yield, coupled with a consistent track record and strong financials, makes it a strong candidate for retirement portfolios or for those seeking regular income streams.
Trading near its 52-week low, now can be an excellent time for long-term investors to consider adding the stock to their portfolios.
