BCE Inc 2

BCE Inc 2

I am today researching this stock, (TSX-BCE) since it has published its fourth quarterly results. I am using their unaudited claims for December 31, 2009. BCE was one of the first stocks I purchased. This stock is hard to get a long-term rate of growth. The main problem is that in 2000 they split off their investment in Nortel.

At that time, Nortel’s and BCE’s stock price was very high also. I sold off half of Nortel at a very good fifty percent and price at an extremely low price. EASILY put BCE and Nortel in Quicken together, I get a long-term return of 12.7% per calendar year since 1987. 1987 is the year I began to monitor my investments on Quicken. Probably the most encourage thing is is insider buying. 1M. Addititionally there is Insider Buying under the company’s possession plan. There is absolutely no Insider Selling that I possibly could see.

The other believe shows the company has trust in the immediate future of the company is the rise in dividends. Around enough time that this company was to visit private in 2008, there is a reduction in total dividends as only two dividends, instead of 4 were paid in 2008. However, since that time there’s been two dividend increases. This is really much better than a lot of other company’s have managed during our recent difficulties.

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Next, I want to look at dividend yield. The current yield is 5.9% and the 5 year average is 4.6%. So on this basis, the existing yield is good. The final thing I like to check is the Graham Price. 29.18 is some 24% below this Graham Price. I probably should explain, again, that the Graham and P/E Price derive from an estimation of 2010 earnings.

Estimates can be wrong. Both P/BV and the dividend produce derive from actual current beliefs and they are more reliable. If you look at all this stuff, it could appear the existing stock price is good. When I look at experts’ recommendations, They are located by me at Strong Buy, Buy, Hold, Underperform and Sell.

So, analysts’ thoughts about this stock run the whole gamete. There are several Strong Buys, Buys and Holds. I only find a couple of Underperform and one Sell. The consensus is most likely a Buy, but I really do not believe you can ignore the massive amount Hold recommendations, nor the huge variety of opinion on this stock.

What a great deal of analysts like is the dividend. They think that the buyout is done with now, BCE will get back to the practice of increasing their dividends on a regular basis. People really appear to like George Cope and feel that BCE shall very well under him. The primary problem cited is wireless competition, both for BCE’s landlines and current or perhaps future wireless rivals.

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