The Globe and Mail reports in its Friday edition that BCE's announcement on Thursday that it will terminate 4,800 positions coincided with a steep drop in quarterly profits at the telco. The Globe's David Berman writes, however, that for investors, the biggest source of concern was the company's miserly dividend increase -- 3.1 per cent, down from the usual annual bump of more than 5 per cent. "They are signalling a more competitive environment. Looking at the growth trajectory, it's going to be lower than in the past," Laura Lau, chief investment officer at Brompton Funds, told The Globe. BCE is essentially a bet on the dividend. The company is saddled with fading assets, and gone are the days of exciting growth. Still, investors may not want to abandon hope. The current dividend yield is 7.8 per cent, based on the latest payout. Even without further increases, the yield alone compares favourably with the long-term average returns for major equity benchmarks. In other words, BCE's dividend yield alone offers an attractive return. The case for buying the stock rests on BCE becoming a leaner, more competitive player that will generate more cash to sustain its dividend. The stock is down, but the bullish case is alive.