BCE Inc.: The Ziply Deal Puts This 9%+ Dividend In Serious Doubt
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BCE Inc. offers a high dividend yield close to 10%, but its sustainability is in doubt due to high debt levels. The company's balance sheet is heavily leveraged from 5G investments and dividend funding, raising concerns about financial stability. The recent deal to acquire Ziply could benefit BCE in the long term but may impact near-term free cash flow.
November 06, 2024 | 8:45 am
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BCE Inc.'s high dividend yield is at risk due to its leveraged balance sheet from 5G investments and dividend funding. The acquisition of Ziply may benefit the company long-term but could strain near-term cash flow.
BCE's high dividend yield is attractive, but the company's high debt levels due to 5G investments and dividend funding raise concerns about its sustainability. The acquisition of Ziply, while potentially beneficial in the long term, could negatively impact near-term free cash flow, putting additional pressure on the dividend.
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