BCE (TSX:BCE) has long been regarded as a dividend stalwart in Canada for years. With a market cap of $27 billion, it is one of Canada’s largest telecommunications and media companies. However, in recent years, the lustre of this company has started to fade.
It’s been an ugly time to be a BCE shareholder
BCE has lost nearly 37% of its value over the past year. Just a few weeks ago, it had a 13.8% dividend yield. However, the company has faced several headwinds, including increased regulation, rising competition, a weakening balance sheet, and an elevated capex cycle.
Unfortunately, it cut its dividend in half. Today, BCE yields close to 6%. Yet, even after that reset, it is still not a stock I’d be interested in owning. The telecom’s balance sheet is still stretched, and its capital allocation/acquisition activity has been highly questionable.
Given these dynamics, even with the dividend cut out of the way, it is a stock I wouldn’t touch today. If you are looking for some higher-yielding opportunities, here are three dividend stocks I’d rather buy than BCE.
I’d rather buy this pipeline stock over BCE
Pembina Pipeline (TSX:PPL) stock yields 5.5% today. It is still lower than BCE’s, but it is much safer and sustainable. Pembina operates a large infrastructure business that caters to the Western Canadian energy patch. It has a focus on natural gas, which is beneficial because natural gas has performed much better than oil in 2025.
Yet, commodity prices don’t have as much impact on Pembina as you might think. Over 80% of its income is from long-term contracts. Its contracted income widely backs its dividend.
The company generates a lot of spare cash, so it has a powerful self-funding model for growing its infrastructure base. Pembina has a sector-leading balance sheet. For dividend stability, modest growth, and a steady business, Pembina is a stock I’d rather hold than BCE.
A safe real estate bet for monthly dividends
BCE only pays dividends on a quarterly basis. However, if you want monthly dividends, First Capital REIT (TSX:FCR.UN) is an attractive buy. It operates one of the largest portfolios of urban grocery-anchored retail properties in Canada. The REIT owns some of the most attractive retail real estate in Canada.
The REIT has enjoyed strong rental rate growth over the past few years. Demand for its well-located properties remains high. Its largest tenants include grocery stores, dollar and value stores, medical practitioners, banks, and liquor stores. All of these provide essential services and tend to be economically resilient.
The REIT has been selling off non-core assets and reducing debt. FCR.UN yields 5% today. Its dividend appears to be very sustainable.
A half century of dividend growth
A final dividend stock I’d rather buy than BCE is Fortis (TSX:FTS). It only has a 3.8% yield today. While it is not high, this is a company you hold if you want a safe, secure dividend. Fortis has a 51-year history of consecutively raising its dividend.
Even after that history, its payout ratio remains relatively low. This utility company spans across Canada, the U.S., and the Caribbean. Ninety-nine percent of its assets are regulated transmission or distribution utilities. These are incredibly stable, cash-generating assets.
Fortis plans to grow its rate base by 5–6% a year. It is expected to grow its annual dividend by a 4–6% annual rate. If you want sleep-well-at-night income, this is the dividend stock to hold.
