02:04:11 EDT Fri 19 Apr 2024
Enter Symbol
or Name
USA
CA



BCE Inc (2)
Symbol BCE
Shares Issued 869,958,840
Close 2016-10-17 C$ 60.20
Market Cap C$ 52,371,522,168
Recent Sedar Documents

Globe says BCE, others has sustainable dividend income

2016-10-18 06:42 ET - In the News

Also In the News (C-CCA) Cogeco Communications Inc
Also In the News (C-ENF) Enbridge Income Fund Holdings Inc
Also In the News (C-IGM) IGM Financial Inc
Also In the News (C-X) TMX Group Ltd

The Globe and Mail attempts to identify sustainable dividend income from Canadian free cash-flow generators in its Tuesday edition. The Globe's Craig McGee writes in the Number Cruncher column that since the end of 2015, the Canadian market has staged an impressive comeback so far this year. A significant contribution of the returns have come from natural-resource sectors such as energy, metals and mining, but if we look deeper, we can also see that dividend-paying companies have been outperforming those without payouts. For instance, the S&P/TSX dividend composite total return index is up 16.9 per cent year-to-date while the full S&P/TSX composite total return index is up 14.8 per cent. Investors are often tempted by the highest yielding firms, but chasing high dividend yields alone could be very risky if those payouts are not sustainable. Firms that are able to generate and increase free cash flow, that is, operating cash flow left over after capital expenditures, may be in a better position to maintain their distributions. Mr. McGee's Canadian dividend firms with strong free cash flow are Cogeco Communications, IGM Financial, TMX Group, Enbridge Income Fund Holdings and BCE.

© 2024 Canjex Publishing Ltd. All rights reserved.