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Stock impact report

Why BCE Stock Slumped 2.3% Tuesday [Yahoo! Finance Canada]

BCE, Inc. (BCE) 
Last bce, inc. earnings: 2/6 07:00 am Check Earnings Report
US:NYSE Investor Relations: bce.ca/investors/investoroverview
Shares of Canadian telco giant BCE Inc TSX:BCE ) slumped 2.3% Tuesday, following a Globe and Mail report that indicated the company would not increase its dividend for three more years. The article, based on a BCE Investor Day presentation, outlined the fact that the company was focused on paying down debt and supporting emerging divisions, which continued dividend hikes would conflict with. News of the dividend increase moratorium came just months after BCE slashed its dividend in half, which may explain why the stock reacted so negatively to the news. Why it matters BCE is a classic dividend stock. The underlying company rarely ever grows its earnings, but it does earn enough to pay out a nice sized dividend. In the past, investors were getting (or rather, expecting to get) a 12% yield from BCE stock. The previous dividend and stock price theoretically produced a yield around that level. However, the dividend was cut, and although the stock price fell in tandem with the dividen Show less Read more
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