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BCE

TSX:BCE
Snowflake Description

Fair value second-rate dividend payer.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
BCE
TSX
CA$54B
Market Cap
  1. Home
  2. CA
  3. Telecom
Company description

BCE Inc., a telecommunications and media company, provides wireless, wireline, Internet, and television (TV) services to residential, business, and wholesale customers in Canada. The last earnings update was 52 days ago. More info.


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BCE Share Price and Events
7 Day Returns
0%
TSX:BCE
-0.2%
CA Telecom
1.2%
CA Market
1 Year Returns
10.2%
TSX:BCE
7.7%
CA Telecom
-2.6%
CA Market
BCE Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
BCE (BCE) 0% -1.6% 1.2% 10.2% 0% 23.4%
CA Telecom -0.2% -2.6% 0.4% 7.7% -10% -1.5%
CA Market 1.2% 1.3% 1% -2.6% 12.8% 2.2%
1 Year Return vs Industry and Market
  • BCE outperformed the Telecom industry which returned 7.7% over the past year.
  • BCE outperformed the Market in Canada which returned -2.6% over the past year.
Price Volatility
BCE
Industry
5yr Volatility vs Market
Related Companies

Value

 Is BCE undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of BCE to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for BCE.

TSX:BCE Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 17 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 6.7%
Perpetual Growth Rate 10-Year CA Government Bond Rate 1.9%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for TSX:BCE
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year CA Govt Bond Rate 1.9%
Equity Risk Premium S&P Global 6%
Telecom Unlevered Beta Simply Wall St/ S&P Global 0.33
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.332 (1 + (1- 26.5%) (51.03%))
0.636
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.8
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.95% + (0.8 * 5.96%)
6.72%

Discounted Cash Flow Calculation for TSX:BCE using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for BCE is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

TSX:BCE DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (CAD, Millions) Source Present Value
Discounted (@ 6.72%)
2019 4,064.29 Analyst x11 3,808.55
2020 4,200.52 Analyst x11 3,688.52
2021 5,175.00 Analyst x1 4,258.28
2022 5,672.89 Est @ 9.62% 4,374.24
2023 6,088.09 Est @ 7.32% 4,399.00
2024 6,435.56 Est @ 5.71% 4,357.46
2025 6,730.25 Est @ 4.58% 4,270.25
2026 6,985.30 Est @ 3.79% 4,153.19
2027 7,211.40 Est @ 3.24% 4,017.82
2028 7,416.92 Est @ 2.85% 3,872.30
Present value of next 10 years cash flows CA$41,199.59
TSX:BCE DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= CA$7,416.92 × (1 + 1.95%) ÷ (6.72% – 1.95%)
CA$158,584.81
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= CA$158,584.81 ÷ (1 + 6.72%)10
CA$82,795.53
TSX:BCE Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= CA$41,199.59 + CA$82,795.53
CA$123,995.12
Equity Value per Share
(CAD)
= Total value / Shares Outstanding
= CA$123,995.12 / 899.73
CA$137.81
TSX:BCE Discount to Share Price
Calculation Result
Value per share (CAD) From above. CA$137.81
Current discount Discount to share price of CA$59.90
= -1 x (CA$59.90 - CA$137.81) / CA$137.81
56.5%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price BCE is available for.
Intrinsic value
>50%
Share price is CA$59.9 vs Future cash flow value of CA$137.81
Current Discount Checks
For BCE to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • BCE's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • BCE's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for BCE's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are BCE's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
TSX:BCE PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in CAD CA$3.19
TSX:BCE Share Price ** TSX (2019-06-21) in CAD CA$59.9
North America Telecom Industry PE Ratio Median Figure of 19 Publicly-Listed Telecom Companies 17.85x
Canada Market PE Ratio Median Figure of 542 Publicly-Listed Companies 15.1x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of BCE.

TSX:BCE PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= TSX:BCE Share Price ÷ EPS (both in CAD)

= 59.9 ÷ 3.19

18.78x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • BCE is overvalued based on earnings compared to the North America Telecom industry average.
  • BCE is overvalued based on earnings compared to the Canada market.
Price based on expected Growth
Does BCE's expected growth come at a high price?
Raw Data
TSX:BCE PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 18.78x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 17 Analysts
5.5%per year
North America Telecom Industry PEG Ratio Median Figure of 10 Publicly-Listed Telecom Companies 2.34x
Canada Market PEG Ratio Median Figure of 248 Publicly-Listed Companies 1.18x

*Line of best fit is calculated by linear regression .

TSX:BCE PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 18.78x ÷ 5.5%

3.41x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • BCE is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on BCE's assets?
Raw Data
TSX:BCE PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in CAD CA$18.05
TSX:BCE Share Price * TSX (2019-06-21) in CAD CA$59.9
Canada Telecom Industry PB Ratio Median Figure of 6 Publicly-Listed Telecom Companies 4.77x
Canada Market PB Ratio Median Figure of 2,425 Publicly-Listed Companies 1.43x
TSX:BCE PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= TSX:BCE Share Price ÷ Book Value per Share (both in CAD)

= 59.9 ÷ 18.05

3.32x

* Primary Listing of BCE.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • BCE is good value based on assets compared to the CA Telecom industry average.
X
Value checks
We assess BCE's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Telecom industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Telecom industry average (and greater than 0)? (1 check)
  5. BCE has a total score of 3/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is BCE expected to perform in the next 1 to 3 years based on estimates from 17 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
5.5%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is BCE expected to grow at an attractive rate?
  • BCE's earnings growth is expected to exceed the low risk savings rate of 1.9%.
Growth vs Market Checks
  • BCE's earnings growth is positive but not above the Canada market average.
  • BCE's revenue growth is positive but not above the Canada market average.
Annual Growth Rates Comparison
Raw Data
TSX:BCE Future Growth Rates Data Sources
Data Point Source Value (per year)
TSX:BCE Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 17 Analysts 5.5%
TSX:BCE Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 17 Analysts 1.7%
Canada Telecom Industry Earnings Growth Rate Market Cap Weighted Average 6.2%
North America Telecom Industry Revenue Growth Rate Market Cap Weighted Average 0.9%
Canada Market Earnings Growth Rate Market Cap Weighted Average 14.9%
Canada Market Revenue Growth Rate Market Cap Weighted Average 5.9%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
TSX:BCE Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 17 Analyst Estimates (S&P Global) See Below
All numbers in CAD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
TSX:BCE Future Estimates Data
Date (Data in CAD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31 24,667 8,314 3,445 4
2020-12-31 24,566 7,953 3,316 17
2019-12-31 24,003 7,888 3,168 17
TSX:BCE Past Financials Data
Date (Data in CAD Millions) Revenue Cash Flow Net Income *
2019-03-31 23,612 7,404 2,864
2018-12-31 23,468 7,384 2,785
2018-09-30 23,251 7,254 2,755
2018-06-30 23,071 7,444 2,744
2018-03-31 23,011 7,541 2,885
2017-12-31 22,757 7,358 2,866
2017-09-30 22,423 7,220 2,867
2017-06-30 22,133 6,930 2,816
2017-03-31 21,785 6,666 2,829
2016-12-31 21,719 6,643 2,894
2016-09-30 21,620 6,633 2,733
2016-06-30 21,558 6,568 2,720

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • BCE's earnings are expected to grow by 5.5% yearly, however this is not considered high growth (20% yearly).
  • BCE's revenue is expected to grow by 1.7% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
TSX:BCE Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 17 Analyst Estimates (S&P Global) See Below

All data from BCE Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

TSX:BCE Future Estimates Data
Date (Data in CAD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31 3.75 3.75 3.75 1.00
2020-12-31 3.64 3.86 3.43 3.00
2019-12-31 3.44 3.51 3.34 3.00
TSX:BCE Past Financials Data
Date (Data in CAD Millions) EPS *
2019-03-31 3.19
2018-12-31 3.10
2018-09-30 3.06
2018-06-30 3.05
2018-03-31 3.20
2017-12-31 3.20
2017-09-30 3.23
2017-06-30 3.20
2017-03-31 3.25
2016-12-31 3.33
2016-09-30 3.16
2016-06-30 3.16

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • BCE is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess BCE's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Canada market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the North America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
BCE has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has BCE performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare BCE's growth in the last year to its industry (Telecom).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • BCE's year on year earnings growth rate has been positive over the past 5 years.
  • BCE's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • BCE's 1-year earnings growth is negative, it can't be compared to the North America Telecom industry average.
Earnings and Revenue History
BCE's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from BCE Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

TSX:BCE Past Revenue, Cash Flow and Net Income Data
Date (Data in CAD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 23,612.00 2,864.00 352.00
2018-12-31 23,468.00 2,785.00 352.00
2018-09-30 23,251.00 2,755.00 399.00
2018-06-30 23,071.00 2,744.00 399.00
2018-03-31 23,011.00 2,885.00 399.00
2017-12-31 22,757.00 2,866.00 399.00
2017-09-30 22,423.00 2,867.00 353.00
2017-06-30 22,133.00 2,816.00 353.00
2017-03-31 21,785.00 2,829.00 353.00
2016-12-31 21,719.00 2,894.00 353.00
2016-09-30 21,620.00 2,733.00 340.00
2016-06-30 21,558.00 2,720.00 340.00
2016-03-31 21,544.00 2,701.00 340.00
2015-12-31 21,514.00 2,526.00 340.00
2015-09-30 21,439.00 2,572.00 335.00
2015-06-30 21,289.00 2,433.00 335.00
2015-03-31 21,183.00 2,280.00 335.00
2014-12-31 21,042.00 2,363.00 335.00
2014-09-30 20,896.00 2,316.00 300.00
2014-06-30 20,800.00 2,059.00 300.00
2014-03-31 20,580.00 2,024.00 300.00
2013-12-31 20,400.00 1,975.00 300.00
2013-09-30 20,179.00 2,146.00 269.00
2013-06-30 20,062.00 2,330.00 269.00
2013-03-31 19,987.00 2,491.00 269.00
2012-12-31 19,978.00 2,456.00 269.00
2012-09-30 19,983.00 2,276.00
2012-06-30 19,911.00 2,391.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • BCE has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • BCE used its assets more efficiently than the North America Telecom industry average last year based on Return on Assets.
  • BCE's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess BCE's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Telecom industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
BCE has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is BCE's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up BCE's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • BCE's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • BCE's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of BCE's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0.2x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from BCE Company Filings, last reported 2 months ago.

TSX:BCE Past Debt and Equity Data
Date (Data in CAD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 20,538.00 27,501.00 668.00
2018-12-31 20,689.00 24,405.00 425.00
2018-09-30 21,143.00 24,461.00 826.00
2018-06-30 20,724.00 24,099.00 390.00
2018-03-31 20,296.00 24,867.00 1,199.00
2017-12-31 20,625.00 23,393.00 625.00
2017-09-30 19,643.00 24,539.00 1,979.00
2017-06-30 19,076.00 23,373.00 557.00
2017-03-31 19,193.00 24,063.00 510.00
2016-12-31 17,854.00 21,459.00 853.00
2016-09-30 16,754.00 21,496.00 1,393.00
2016-06-30 16,764.00 20,349.00 615.00
2016-03-31 16,820.00 20,353.00 423.00
2015-12-31 17,329.00 20,285.00 613.00
2015-09-30 16,485.00 20,860.00 622.00
2015-06-30 16,380.00 20,501.00 169.00
2015-03-31 15,319.00 21,324.00 1,125.00
2014-12-31 15,239.00 20,098.00 566.00
2014-09-30 15,031.00 20,582.00 1,406.00
2014-06-30 15,751.00 18,886.00 150.00
2014-03-31 15,981.00 19,211.00 720.00
2013-12-31 16,250.00 18,912.00 335.00
2013-09-30 16,194.00 19,241.00 603.00
2013-06-30 15,828.00 17,790.00 2,208.00
2013-03-31 15,156.00 17,129.00 1,155.00
2012-12-31 14,725.00 16,022.00 129.00
2012-09-30 14,536.00 15,584.00 548.00
2012-06-30 14,823.00 15,621.00 788.00
  • BCE's level of debt (133.9%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (120.2% vs 133.9% today).
  • Debt is well covered by operating cash flow (26.9%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 5.3x coverage).
X
Financial health checks
We assess BCE's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. BCE has a total score of 2/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is BCE's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
5.29%
Current annual income from BCE dividends. Estimated to be 5.48% next year.
If you bought CA$2,000 of BCE shares you are expected to receive CA$106 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • BCE's pays a higher dividend yield than the bottom 25% of dividend payers in Canada (2.11%).
  • BCE's dividend is below the markets top 25% of dividend payers in Canada (5.71%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
TSX:BCE Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 17 Analyst Estimates (S&P Global) See Below
North America Telecom Industry Average Dividend Yield Market Cap Weighted Average of 10 Stocks 5.3%
Canada Market Average Dividend Yield Market Cap Weighted Average of 335 Stocks 3.5%
Canada Minimum Threshold Dividend Yield 10th Percentile 1.1%
Canada Bottom 25% Dividend Yield 25th Percentile 2.1%
Canada Top 25% Dividend Yield 75th Percentile 5.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

TSX:BCE Future Dividends Estimate Data
Date (Data in CA$) Dividend per Share (annual) Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31 3.44 5.00
2020-12-31 3.32 9.00
2019-12-31 3.17 10.00
TSX:BCE Past Annualized Dividends Data
Date (Data in CA$) Dividend per share (annual) Avg. Yield (%)
2019-05-02 3.170 5.225
2019-02-07 3.170 5.368
2018-11-01 3.020 5.441
2018-08-02 3.020 5.730
2018-05-03 3.020 5.546
2018-02-08 3.020 5.462
2017-11-02 2.870 4.796
2017-08-03 2.870 4.872
2017-02-02 2.870 4.832
2016-11-03 2.730 4.691
2016-08-10 2.730 4.476
2016-08-04 2.730 4.343
2016-02-04 2.730 4.572
2015-11-05 2.600 4.672
2015-08-06 2.600 4.742
2015-04-30 2.600 4.839
2015-02-05 2.600 4.771
2014-11-06 2.470 4.561
2014-08-11 2.265 4.665
2014-05-09 2.470 5.011
2014-05-06 2.470 5.056
2014-03-12 2.470 5.142
2014-02-06 2.470 5.188
2013-11-07 2.330 5.046
2013-08-08 2.330 5.300
2013-05-09 2.330 5.238
2013-03-13 2.330 4.961
2013-02-07 2.330 5.098
2012-08-08 2.270 5.251
2012-05-03 2.170 5.216
2011-12-08 2.170 5.347
2011-11-03 2.070 5.212
2011-08-04 2.070 5.363
2011-05-12 2.070 5.461
2010-12-10 1.970 5.529
2010-11-04 1.830 5.336
2010-08-05 1.830 5.489
2010-05-11 1.740 5.551
2010-02-04 1.740 5.789
2009-12-17 1.620 5.790
2009-08-06 1.620 6.092

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of BCE's earnings are paid to the shareholders as a dividend.
  • Dividends paid are not well covered by earnings (1x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (1.1x coverage).
X
Income/ dividend checks
We assess BCE's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can BCE afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. BCE has a total score of 3/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of BCE's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
George Cope
COMPENSATION CA$12,014,442
AGE 56
TENURE AS CEO 10.9 years
CEO Bio

Mr. George Alexander Cope, O.C. C.M., has been the President of Bell Canada, Inc. since January 19, 2006 and has also been its Chief Executive Officer since July 11, 2008. Mr. Cope has been the President and Chief Executive Officer of BCE Inc. since July 11, 2008. He has been the President of Bell Canada Holdings Inc., since January 19, 2006. He has been in the Canadian telecommunications industry for more than 20 years. Previously, he served as the President and Chief Operating officer of Bell Canada Corporation from October 2005 to July 2008. He served as the Chief Operating Officer of Bell Canada Inc. and Bell Canada Holdings Inc. from January 19, 2006 to July 11, 2008. Prior to joining Bell in 2005, He served as the President and Chief Executive Officer of Tele-Mobile Company (also known as Telus Mobility), a subsidiary of TELUS Corporation from October 2000 to October 19, 2005. He served as an Executive Vice President of Telus Corporation from 2000 to October 19, 2005. Previously, he served as the President and Chief Executive Officer of Clearnet Communications Inc., from 1987 to 2000. Prior to Clearnet, he served as a Vice President of Corporate Development at Lenbrook Inc. He serves as the Chairman of Bell Aliant Regional Communications Inc. He serves as the Chairman of Bell Aliant Inc., Bell Aliant Holdings Inc. and Bell Aliant Preferred Equity Inc. Mr. Cope served as the Chairman of Bell Aliant Regional Communications Holdings Inc until June 16, 2010. He serves as Director of Maple Leaf Sports & Entertainment Ltd. He has been an Independent Director of Bank of Montreal (also known as BMO Financial Group) since July 25, 2006, Bell Aliant Preferred Equity Inc. since February 2011 and Bell Aliant Inc., since July 2008. He has been a Director of Bell Aliant Regional Communications Inc. since July 2008. He has been a Director of Bell Canada Inc. and BCE Inc. since July 11, 2008. He serves as Member of the Canadian Advisory Board at Catalyst, Inc. Mr. Cope served as Director of Bell Aliant Regional Communications Holdings Inc. from July 2008 to June 16, 2010. He served as Director of Spotwave Wireless Inc. He served as a Director of Momentum Advanced Solutions Inc.(formerly, OnX Enterprise Solutions Inc.) from March 20, 2002 to December 2005 and NII Holdings Inc., (formerly, Nextel International) from July 23, 2004 to May 11, 2010. He serves as a Member of the Advisory Board at Richard Ivey School of Business at the University of Western Ontario and the Board of Governors of Crescent School. He serves as a Director of the Canadian Wireless Telecommunications Association and the Toronto General & Western Foundation. He received an honorary doctorate in business from his alma mater in 2012 and is a past recipient of Canada's Top 40 Under 40 Award. Mr. Cope holds an MBA (Honors Business Administration) degree from the University of Western Ontario in 1984. He is recognized as Canada’s Outstanding CEO of the Year for 2015. Mr. Cope was named Ivey Business Leader of the Year in 2013.

CEO Compensation
  • George's compensation has been consistent with company performance over the past year, both up more than 20%.
  • George's remuneration is higher than average for companies of similar size in Canada.
Management Team Tenure

Average tenure and age of the BCE management team in years:

6.3
Average Tenure
56
Average Age
  • The average tenure for the BCE management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

George Cope

TITLE
President
COMPENSATION
CA$12M
AGE
56
TENURE
10.9 yrs

Wade Oosterman

TITLE
Vice Chair & Group President
COMPENSATION
CA$7M
AGE
57
TENURE
4.2 yrs

Glen LeBlanc

TITLE
Executive VP & CFO
COMPENSATION
CA$7M
AGE
50
TENURE
3.9 yrs

Mirko Bibic

TITLE
Chief Operating Officer
COMPENSATION
CA$4M
TENURE
0.7 yrs

Tom Little

TITLE
President of Bell Business Markets - Bell Canada
COMPENSATION
CA$3M
TENURE
8.4 yrs

Thane Fotopoulos

TITLE
Vice President of Investor Relations

Michel Lalande

TITLE
Senior VP

Martine Turcotte

TITLE
Vice Chairman of Quebec
AGE
57
TENURE
10.9 yrs

Michael Cole

TITLE
Executive VP & Chief Information Officer of Bell Canada

John Watson

TITLE
Executive Vice President of Customer Experience - Bell Canada
COMPENSATION
CA$3M
AGE
54
Board of Directors Tenure

Average tenure and age of the BCE board of directors in years:

8.6
Average Tenure
65
Average Age
  • The tenure for the BCE board of directors is about average.
Board of Directors

Gord Nixon

TITLE
Chair of the Board
COMPENSATION
CA$425K
AGE
61
TENURE
3.2 yrs

George Cope

TITLE
President
COMPENSATION
CA$12M
AGE
56
TENURE
10.9 yrs

Barry Allen

TITLE
Independent Director
COMPENSATION
CA$225K
AGE
69
TENURE
10.1 yrs

Bob Brown

TITLE
Independent Director
COMPENSATION
CA$250K
AGE
73
TENURE
10.1 yrs

Paul Weiss

TITLE
Independent Director
COMPENSATION
CA$250K
AGE
70
TENURE
10.1 yrs

Karen Sheriff

TITLE
Corporate Director
COMPENSATION
CA$198K
AGE
60
TENURE
2.2 yrs

Sophie Brochu

TITLE
Independent Director
COMPENSATION
CA$205K
AGE
54
TENURE
9.1 yrs

Bob Simmonds

TITLE
Independent Director
COMPENSATION
CA$205K
AGE
64
TENURE
8.1 yrs

David Denison

TITLE
Independent Director
COMPENSATION
CA$225K
AGE
66
TENURE
6.7 yrs

Ian Greenberg

TITLE
Independent Director
COMPENSATION
CA$205K
AGE
76
TENURE
5.9 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (CA$) Value (CA$)
01. Mar 19 Sell Mirko Bibic Individual 27. Feb 19 27. Feb 19 -519 CA$58.23 CA$-30,221
22. Feb 19 Sell Thomas Little Individual 21. Feb 19 21. Feb 19 -5,772 CA$58.03 CA$-334,949
22. Feb 19 Sell Mirko Bibic Individual 22. Feb 19 22. Feb 19 -5,772 CA$58.29 CA$-336,450
30. Nov 18 Sell Glen LeBlanc Individual 29. Nov 18 29. Nov 18 -7,471 CA$57.00 CA$-425,847
20. Nov 18 Buy Robert Simmonds Individual 19. Nov 18 19. Nov 18 2,200 CA$55.49 CA$122,078
21. Nov 18 Buy Robert Simmonds Individual 19. Nov 18 19. Nov 18 2,600 CA$55.49 CA$144,274
09. Nov 18 Sell Bernard Le Duc Individual 06. Nov 18 06. Nov 18 -7,513 CA$52.90 CA$-397,438
X
Management checks
We assess BCE's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. BCE has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Read This Before Buying BCE Inc. (TSE:BCE) For Its Dividend

Dividend Growth Potential Given that the dividend has been cut in the past, we need to check if earnings are growing and if that might lead to stronger dividends in the future. … Limited recent earnings growth and a high payout ratio makes it hard for us to envision strong future dividend growth, unless the company should have substantial pricing power or some form of competitive advantage. … Unfortunately, earnings growth has also been mediocre, and the company has cut its dividend at least once in the past.

Simply Wall St -

Where BCE Inc.'s (TSE:BCE) Earnings Growth Stands Against Its Industry

In this commentary, I will examine BCE Inc.'s (TSE:BCE) latest earnings update (31 March 2019) and compare these figures against its performance over the past couple of years, as well as how the rest of the telecom industry performed. … Furthermore, this one-year growth rate has been lower than its average earnings growth rate over the past 5 years of 5.8%, indicating the rate at which BCE is growing has slowed down. … I recommend you continue to research BCE to get a more holistic view of the stock by looking at: Future Outlook: What are well-informed industry analysts predicting for BCE’s future growth?

Simply Wall St -

Are Insiders Selling BCE Inc. (TSE:BCE) Stock?

TSX:BCE Recent Insider Trading, May 24th 2019 If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. … BCE Insiders Are Selling The Stock Over the last three months, we've seen a bit of insider selling at BCE. … Insider Ownership For a common shareholder, it is worth checking how many shares are held by company insiders.

Simply Wall St -

Why BCE Inc.'s (TSE:BCE) CEO Pay Matters To You

has a market capitalization of CA$54b, and pays its CEO total annual compensation worth CA$12m. … We looked at a group of companies with market capitalizations over CA$11b and the median CEO total compensation was CA$8.8m. … As you can see, George Cope is paid more than the median CEO pay at large companies, in the same market.

Simply Wall St -

Investors Who Bought BCE (TSE:BCE) Shares Five Years Ago Are Now Up 24%

(TSE:BCE) share price is up 24% in the last 5 years, clearly besting than the market return of around 5.9% (ignoring dividends). … One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS). … During five years of share price growth, BCE achieved compound earnings per share (EPS) growth of 4.0% per year.

Simply Wall St -

What Can We Make Of BCE Inc.’s (TSE:BCE) High Return On Capital?

Specifically, we're going to calculate its Return On Capital Employed (ROCE), in the hopes of getting some insight into the business. … Return On Capital Employed (ROCE): What is it? … ROCE measures the 'return' (pre-tax profit) a company generates from capital employed in its business.

Simply Wall St -

Does BCE Inc.'s (TSE:BCE) Debt Level Pose A Problem?

its financial health remains the key to continued success. … This article will examine BCE’s financial liquidity and debt levels to get an idea of whether the company can deal with cyclical downturns and maintain funds to accommodate strategic spending for future growth. … Note that this commentary is very high-level and solely focused on financial health, so I suggest you dig deeper yourself

Simply Wall St -

Could The BCE Inc. (TSE:BCE) Ownership Structure Tell Us Something Useful?

Insiders often own a large chunk of younger, smaller, companies while huge companies tend to have institutions as shareholders. … We also tend to see lower insider ownership in companies that were previously publicly owned. … We'd expect to see both institutions and retail investors owning a portion of the company.

Simply Wall St -

Income Investors Should Know The BCE Inc. (TSE:BCE) Ex-Dividend Date

If you are interested in cashing in on BCE Inc.'s (TSE:BCE) upcoming dividend of CA$0.79 per share, you only have 2 days left to buy the shares before its ex-dividend date, 14 March 2019, in time for dividends payable on the 15 April 2019. … 5 checks you should use to assess a dividend stock? … Whenever I am looking at a potential dividend stock investment, I always check these five metrics:?

Simply Wall St -

What Should Investors Know About BCE Inc.'s (TSE:BCE) Long Term Outlook?

BCE Inc.'s (TSE:BCE) announced its latest earnings update in December 2018, whicha … revealed … company

Simply Wall St -

Company Info

Description

BCE Inc., a telecommunications and media company, provides wireless, wireline, Internet, and television (TV) services to residential, business, and wholesale customers in Canada. It operates in three segments: Bell Wireless, Bell Wireline, and Bell Media. The Bell Wireless segment offers wireless voice and data communications products and services, including 40 live and on-demand channels on smartphones and tablets; roaming services; push-to-talk, field service management, worker safety, and mobility management solutions; and asset management, smart buildings, smart cities, fleet management, and other Internet of Things services. It also provides various 4G LTE and LTE-A smartphones and tablets, mobile Internet hubs and sticks, and mobile Wi-Fi devices, as well as smartwatches, Bell connected cars, trackers, smart homes, lifestyle products, and virtual reality products. The Bell Wireline segment provides data, including Internet access and Internet protocol television; and local telephone, long distance, and other communications services and products. It also provides home security, monitoring, and automation services; and satellite TV and connectivity services. In addition, this segment offers local exchange carrier and telecommunications services; sells wireline-related products; and buys and sells local telephone, long distance, data, and other services from or to resellers, and other carriers. The Bell Media segment provides conventional TV, specialty TV, pay TV, and streaming services; and digital media, radio broadcasting, out-of-home advertising services, sports and other event production, and broadcasting services. It owns and operates approximately 30 conventional TV stations; 33 specialty and Pay TV channels; 3 direct-to-consumer streaming services; 109 licensed radio stations; and 200 Websites and approximately 30 apps. The company was formerly known as Bell Canada Enterprises Inc. BCE Inc. was founded in 1880 and is headquartered in Verdun, Canada.

Details
Name: BCE Inc.
BCE
Exchange: TSX
Founded: 1880
CA$53,893,982,799
899,732,601
Website: http://www.bce.ca
Address: BCE Inc.
Building A,
8th Floor,
Verdun,
Quebec, H3E 3B3,
Canada
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
TSX BCE Common Shares The Toronto Stock Exchange CA CAD 02. Jan 1968
NYSE BCE Common Shares New York Stock Exchange US USD 02. Jan 1968
DB BCE1 Common Shares Deutsche Boerse AG DE EUR 02. Jan 1968
BST BCE1 Common Shares Boerse-Stuttgart DE EUR 02. Jan 1968
TSX BCE.PRR PFD 1ST SER R The Toronto Stock Exchange CA CAD 24. Nov 2000
TSX BCE.PRA PFD 1ST SER AA The Toronto Stock Exchange CA CAD 01. Mar 2002
TSX BCE.PRY PFD 1ST SER Y The Toronto Stock Exchange CA CAD 18. Dec 1997
TSX BCE.PRS PFD 1ST S% The Toronto Stock Exchange CA CAD 21. Oct 1996
TSX BCE.PRZ PFD 1ST SER Z The Toronto Stock Exchange CA CAD 22. Nov 2002
TSX BCE.PRC PFD 1ST SER AC The Toronto Stock Exchange CA CAD 28. Feb 2003
TSX BCE.PRT PFD 1ST SER T The Toronto Stock Exchange CA CAD 23. Oct 2006
TSX BCE.PRE PFD 1ST CL AE The Toronto Stock Exchange CA CAD 01. Feb 2007
TSX BCE.PRH PFD 1ST CL AH The Toronto Stock Exchange CA CAD 01. Feb 2007
TSX BCE.PRF PFD 1ST CL AF The Toronto Stock Exchange CA CAD 01. Feb 2007
TSX BCE.PRG PFD 1ST CL AG The Toronto Stock Exchange CA CAD 01. Feb 2007
TSX BCE.PRB PFD SHS SER AB The Toronto Stock Exchange CA CAD 28. Aug 2007
TSX BCE.PRD RED 1ST PFD AD The Toronto Stock Exchange CA CAD 26. Feb 2008
TSX BCE.PRL 1ST PFD SER AL The Toronto Stock Exchange CA CAD 04. Jan 2017
TSX BCE.PRK 1ST PFD SER AK The Toronto Stock Exchange CA CAD 05. Jul 2011
TSX BCE.PRJ PFD CL A-AJ The Toronto Stock Exchange CA CAD 02. Aug 2011
OTCPK BECE.F PFD 1ST CL AH Pink Sheets LLC US USD 01. Feb 2007
TSX BCE.PRM 1ST PFD SER AM The Toronto Stock Exchange CA CAD 26. Sep 2014
TSX BCE.PRN RED PFD 1ST AN The Toronto Stock Exchange CA CAD 01. Apr 2016
TSX BCE.PRO 1SR PFD SER AO The Toronto Stock Exchange CA CAD 26. Sep 2014
TSX BCE.PRQ 1SR PFD SER AQ The Toronto Stock Exchange CA CAD 26. Sep 2014
Number of employees
Current staff
Staff numbers
52,790
BCE employees.
Industry
Integrated Telecommunication Services
Telecom
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/06/23 23:59
End of day share price update: 2019/06/21 00:00
Last estimates confirmation: 2019/06/21
Last earnings filing: 2019/05/02
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.