BCE (TSX:BCE) inventory’s dividend has had a loud 12 months. After years of regular will increase, the corporate lower the annualized widespread dividend to $1.75 per share from $3.99, efficient with the second-quarter (Q2) 2025 dividend. That change decreased the quarterly fee from $0.9975 to $0.4375, and BCE inventory has stored that new degree since then. Administration framed the lower as a reset to defend the steadiness sheet and rebuild free money move whereas curiosity prices rose and community spending stayed heavy. So, what ought to buyers think about now?
Into BCE
BCE inventory is Bell, the telecom big many Canadians depend on for wi-fi, web, and enterprise connectivity, with media belongings inside Bell Media. Telecoms can really feel boring, however demand stays sticky as a result of households deal with connectivity like a utility. The trade-off is fixed funding in fibre and community upgrades, which might squeeze money move when charges climb. That push and pull sits behind the dividend drama, and it shapes what the inventory can do from right here.
The inventory has tried to regular itself whereas buyers digest the brand new payout and the corporate’s spending plans. Over the previous 12 months, it has moved inside a large band, with shares up simply 3% after leaping up and down like a yo-yo. In late January 2026, it traded across the mid-$30s, which suggests the panic section has eased, however buyers nonetheless need proof that money technology can keep constant via 2026.
Below the hood, BCE inventory confronted a more durable working backdrop in Canada. In Q3 2025, Bell CTS added 26,111 web new retail high-speed Web subscribers, down 38.4% from the prior 12 months. Administration pointed to aggressive promotional gives by rivals and fewer new fibre footprint enlargement. BCE inventory additionally mentioned slowing business progress mirrored decrease immigration and slower housing begins, which issues as a result of fewer new households means fewer simple new connections.
Into earnings
Earnings present why the dividend lower didn’t come out of nowhere, but in addition present BCE inventory nonetheless has actual incomes energy. In Q3 2025, BCE delivered 1.3% consolidated income progress and 1.5% greater adjusted earnings earlier than curiosity, taxes, depreciation, and amortization (EBITDA) 12 months over 12 months. Adjusted web earnings elevated 6.5% to $733 million, and adjusted earnings per share (EPS) rose 5.3% to $0.79. Free money move elevated 20.6% to $1.003 billion, whereas money flows from working actions rose to $1.914 billion.
The headline web revenue quantity appears to be like dramatic, and it deserves context. BCE inventory reported web earnings attributable to widespread shareholders of $4.502 billion in Q3 2025, and it mentioned the year-over-year swing mirrored greater beneficial properties on investments tied to the sale of its minority stake in Maple Leaf Sports activities and Leisure and decrease impairment of belongings, primarily in Bell Media. That’s the reason forward-looking money move issues greater than headline revenue.
For the near-term outlook, BCE inventory confirmed 2025 steering that targets income progress of 0% to 2%, adjusted EBITDA progress of 0% to 2%, capital depth of about 15%, and free money move progress of 6% to 11%. It additionally warned that adjusted EPS remains to be anticipated to fall 12 months over 12 months, with the up to date vary displaying a decline of 13% to 10%. The plan is straightforward on paper: spend much less, defend margins, and let money move catch as much as the brand new dividend degree.
Backside line
That alls support, valuation appears to be like tempting, however you should learn it correctly. BCE inventory presently gives a trailing price-to-earnings ratio (P/E) of about 5.11 and a ahead P/E round 12.59. This hints at why the headline a number of can mislead after one-time beneficial properties. The ahead dividend stays $1.75, or roughly a 5.14% yield at current costs. And that may nonetheless create loads even from a $7,000 funding.
| COMPANY | RECENT PRICE | NUMBER OF SHARES | ANNUAL DIVIDEND | ANNUAL TOTAL PAYOUT | FREQUENCY | TOTAL INVESTMENT |
|---|---|---|---|---|---|---|
| BCE | $34.45 | 203 | $1.75 | $355.25 | Quarterly | $6,993.35 |
BCE inventory is usually a purchase now, even with a decrease dividend, if you’d like regular TFSA revenue and you’ll tolerate sluggish progress, heavy capital wants, and coverage noise. The reset makes the payout simpler to fund and beats nostalgia for outdated dividends immediately. When you purchase, dimension it modestly, watch money move every quarter, and deal with upside as a bonus, not a promise.