Why you can’t go wrong investing in BCE

BCE recently increased their quarterly dividend by 5.1% (see details).  That’s pretty good for a mature company, but if that’s not enough for you, here are 5 reasons why you can’t go wrong investing in BCE.

BCE is big With a market capitalization of about $50 billion, BCE is one of the largest companies in Canada.  What does that mean?  It mean it has the share capital to make big purchases (like it’s recent acquisition of Manitoba Telecom).
Free cash flow (FCF): FCF is a measure of a company’s financial performance, calculated as operating cash flow minus capital expenditures. FCF represents the cash that a company is able to generate after spending the money required to maintain or expand its asset base.  BCE is targeting 3 to 7% growth in FCF in 2017.  Is there another dividend increase coming?   Looks like it.
Millions of customers: BCE reported 8,468,872 wireless, 2,744,909 television, 3,476,562 high speed internet and 6,257,732 NAS subscribers  at the end of 2016.  BCE also partially owns Maple Leaf Sports and Entertainment.  BCE is having no problems finding new customers in the post landlne world.
Growing safe dividend:  13 increases to the BCE common share dividend since the end of 2008 – a total increase of 97%.  With a sustainable payout ratio of 65% to 75%, the dividends appear to be safe as well.
Competition: The telecommunications space in Canada is a protected industry with high costs to enter.  BCE is a well run company which is meeting the challenges of its domestic competitors and pressures from new technologies.