The Globe and Mail reports in its Saturday, Jan. 3, edition that BCE is a top pick for Portfolio Management managing director Anish Chopra. The Globe's Darcy Keith writes that after reducing its dividend in May, 2025, BCE addressed an unsustainable payout that had been straining cash flow and undermining investor confidence. Mr. Chopra says in a note: "While unpopular, the decision materially lowered financial risk and restored balance-sheet flexibility. Expectations for BCE are now far more modest, and competitive pressures in the Canadian telecom market appear less aggressive than in recent years. With capital spending moderating and management focused on financial discipline, the investment case does not depend on strong growth. Trading at depressed valuation levels and offering an attractive income stream supported by improved cash flow visibility, BCE fits well within a portfolio focused on stability, income and mean-reversion potential." The Globe reported on Dec. 17 that RBC Dominion Securities analyst Drew McReynolds was sticking with his "outperform" recommendation and $38 share target for BCE. The shares could then be had for $31.92.
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