A 5G Stock With 5.9% Dividend Yield: Buy Alert!

May 10, 2021 08:31 PM AEST | By Raza Naqvi
 A 5G Stock With 5.9% Dividend Yield: Buy Alert!
Image source: Lemau Studio, Shutterstock

Stocks of BCE Inc. (TSX:BCE), the parent firm of Bell Canada, caught the attention of the equity market enthusiasts after it released its first-quarter 2021 earnings report last week. BCE stock also trended after it announced a grant of C$ 750,000 in funding to six organizations providing access to mental healthcare to people from BIPOC (Black, Indigenous and People of Colour) communities.

The company had launched the Bell Let's Talk initiative in 2011 to combat stigma around mental illness. Mary Deacon, Chair of Bell Let's Talk, said that due to the impact of COVID-19 and racial injustice, there has been a growing demand for mental health services.

Let's Explore Recent Financial Performance Of Bell Canada (TSX:BCE)

In the first quarter of this year, the communication services company clocked a revenue of C$ 5.7 billion, which represented an increase of 1.2 per cent year-over-year (YoY). The cash flows from operating activities increased by 37.3 per cent to C$ 1,992 million in the same period.

Copyright © 2021 Kalkine Media

The company posted an increased adjusted EBITDA to C$ 2,429 million in Q1 2021, up by 0.5 per cent in comparison from Q1 2020. The free cash flow increased by 53.8 per cent to C$ 940 million in the same period.

The company's net earnings were C$ 687 million in the first quarter of 2021.

Here's How BCE Stock Performed

The stock grew by about two per cent in a week and based on a five-day average, over 2 million BCE shares were traded on the TSX. At market close on Friday, May 7, the scrips were priced at C$ 59.11 apiece, a little less than its 52-week high of C$ 60.14 on June 8, 2020.

The S&P TSX Integrated Telecommunication Services (Sub Industry) Index plunged by about four per cent in a year and it was outperformed by BCE stock as it grew by 4.6 per cent. Its year-to-date (YTD) growth stands at 8.6 per cent.

With a current dividend yield of 5.9 per cent, Bell Canada distributes a quarterly dividend of C$ 0.875. The company holds a debt-to-equity (D/E) ratio of 1.6 and its return on equity is 13.3 per cent, as per TMX.

The above constitutes a preliminary view and any interest in stocks should be evaluated further from an investment point of view.


Disclaimer

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media Pty Ltd (Kalkine Media, we or us), ACN 629 651 672 and is available for personal and non-commercial use only. The principal purpose of the Content is to educate and inform. The Content does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the Content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stocks of the company(s) or engage in any investment activity under discussion. Kalkine Media is neither licensed nor qualified to provide investment advice through this platform. Users should make their own enquiries about any investments and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used on this website are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed/music used on this website unless stated otherwise. The images/music that may be used on this website are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated as or found to be necessary.


AU_advertise

Advertise your brand on Kalkine Media

Sponsored Articles


Investing Ideas

Previous Next
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it.