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Fool Canada’s first 1,000%+ winner?

Our Chief Investment Advisor, Iain Butler, and a team of The Motley Fool’s most talented investors from across the globe recently embarked on an unprecedented mission:

To identify the 20 Canadian small-cap companies they believe have the best shot at earning investors like you gains of 1,000%+ over the coming years.

For the next few days only, you can get the names and full details on these 20 potential “10-baggers” when you join Iain and his team in a first-of-its-kind project they have dubbed Discovery Canada 2017.

BCE Inc. Now Yields 4.75%: Time to Buy?

BCE Inc. (TSX:BCE)(NYSE:BCE) has dropped nearly 10% in the past three months, and investors who missed the rally earlier in the year are looking at the juicy yield and wondering if this is the right time to buy.

Let’s take a look at Canada’s communications giant to see if it deserves to be in your portfolio.

Earnings

BCE reported steady Q3 2016 results.

Operating revenue rose 1.2% compared with the same period last year. Cash flow from operating activities increased 3.5%, and the company generated a 1.1% gain in net earnings.

The numbers didn’t shoot the lights out, but the company continues to make gains in its core operations, adding 135,000 net new wireless, Internet, and TV subscribers.

Wireless operating revenue jumped 4.3% as smartphone users continue to consumer more data. Service revenue rose 5.7%, offsetting an 11.2% slide in product revenue due to competitive pressure and generous promotions.

BCE’s wireless customers continue to spend more on a monthly basis. The blended average revenue per user (ARPU) rose 3.7% to $67.76.

The media group has expanded significantly in recent years, and BCE continues to drive efficiency into the division as it moves to get the various pieces working together in a way that maximizes revenue across all platforms.

The media assets include sports teams, a television network, specialty channels, and radio stations. Revenue rose 3.5% in the group compared with last year, so the company is making headway despite a challenging advertising market.

Strong contributions came from the Crave TV streaming service, which topped one million users, and the company’s decision to expand The Movie Network into a national pay TV service.

The giant grows

BCE recently bought out its partners in Q9 Networks, which is a data centre operator providing outsourced hosting services to government and corporate clients.

The company is also making progress on its acquisition of Manitoba Telecom Services.

Dividends

BCE is one of Canada’s top dividend stocks and holds an anchor position in many portfolios. Investors have been hesitant to buy this year due to the lofty multiple, and anyone who follows the company knows the stock doesn’t often go on sale.

In recent days the stock has extended its slide, and the current quarterly payout of $0.6825 per share now provides a yield of 4.75%. Investors should see the distribution continue to rise in step with free cash flow growth.

Should you buy?

Dividend stocks are being sold in response to a mini-meltdown in global bond markets. As bond prices fall, yields increase, making dividend stocks less attractive.

Further weakness in BCE might continue in the near term, but the generous yield should limit the extent of the pullback. If you are a buy-and-hold investor searching for reliable yield close to 5%, BCE looks pretty good at the current price.

Stock Buy Alert Hits Astounding 96% Success Rate!

The hand-picked investing team inside Stock Advisor Canada recently issued a buy alert for one special type of "bread-and-butter" stock where The Motley Fool U.S. has banked profits on 23 out of 24 recommendations. Frankly, with an astounding 96% success rate that has delivered average returns of 260%, chances are this new pick could deliver life-changing returns as well. Because the team at Stock Advisor Canada fully embraces the same time-tested investing philosophies that have led to countless Motley Fool winners globally. So simply click here to unlock the full details behind this new recommendation and join Stock Advisor Canada.

*96% accuracy includes restaurant stock recommendations from Motley Fool U.S. services Stock Advisor, Rule Breakers, Hidden Gems, Income Investor and Inside Value since each services inception. Returns as of 5/27/16.

Fool contributor Andrew Walker has no position in any stocks mentioned.

NEW! This Stock Could Be Like Buying Amazon In 1997

For only the 5th time in over 14 years, Motley Fool co-founder David Gardner just issued a Buy Recommendation on this recent Canadian IPO.

Stock Advisor Canada’s Chief Investment Adviser, Iain Butler, also recommended this company back in March – and it’s already up a whopping 57%!

Enter your email address below to find out how you can claim your copy of this brand new report, “Breakthrough IPO Receives Rare Endorsement.”

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