Yahoo Finance This 5% Yield Dividend Stock Is an Absolute Monster, Up 19% in 2019!
BCE (TSX:BCE)(NYSE:BCE) is Canada’s largest telecommunications and media company. It provides Canadians with wireless and wireline internet, and television services.
Residential, wholesale, and business customers alike rely on the company for high-quality services through Bell Wireless, Bell Wireline, and Bell Media. BCE, being the industry leader that it is, obliges without fail.
The company’s stocks have a reasonable share price of $64.42 at the time of this writing with a price to earnings ratio of 17.45 and a price to book ratio of 3.44.
The market capitalization stands at $58.21 billion. BCE’s strong financial position allows the communications giant to use its low cost debt to finance its operations.
An operating margin of 23.50% and a return on equity of 14.96% is evidence of the company’s excellent performance through these metrics.
Massive and hungry
BCE is one of the best companies in the world of telecommunications. BCE also offers services for home security, monitoring, and automation services.
The company facilitates connectivity and satellite TV, local telephone, and long-distance communications services; the company is already huge and wishes to grow further.
BCE has increased its focus on building advanced fiber and mobile networks that will not only improve the company’s service, but also increase the number of subscribers.
In 2019 alone, BCE reported growth across its media, wireline, and wireless segments. In the latest quarter, the company’s bottom line increased by more than 6.3%, and its free cash flow increased by 17.3% year over year.
The company leads when it comes to subscriber growth. The Q3 2019 net wireless customer additions broke records. Another significant and favourable statistic is the EBITDA for the company that has seen 56 consecutive quarters of increase year over year.
Juicy dividends
The company sells several products, including Bell connected cars, trackers, smart homes, lifestyle products, smartphones, tablets, mobile Wi-Fi devices, smartwatches, mobile internet hubs, and even VR products.
A company that leaves little to the imagination as far as what it can do for its customers and is continually hungry for improvement, BCE also has a juicy dividend yield.
At the time of this writing, the company is paying shareholders dividend payouts at a 4.92% yield every quarter. The operating revenue for the company has steadily increased over the years despite recessions.
The service revenue growth over the past few years have continued to appreciate due to robust wireless, IPTV, and Internet subscriber growth.
At writing, stocks from the BCE are trading at $64.42 per share – up 19.36% year to date and down just 0.98% from its 52-week high of $65.06.
Foolish takeaway
Many investors duck tail and run due to recession talks. They consider investing their money in alternative options like GICs and bonds.
There will always be a need to communicate even in a recession. While profits might not be as significant, the company can stay afloat. I would suggest that it is a better idea to look at stocks like BCE.
Any company that can see deliver through a recession and offers shareholders dividends at a yield of almost 5% is worth a better look.
More reading
Generate $1,000 in Monthly Passive Income With Just $100,000 Capital
Canada Revenue Agency: 1 TFSA Mistake That Could Get You in Deep Trouble
Fool contributor Adam Othman has no position in any of the stocks mentioned.
The Motley Fool’s purpose is to help the world invest, better. Click here now for your free subscription to Take Stock, The Motley Fool Canada’s free investing newsletter. Packed with stock ideas and investing advice, it is essential reading for anyone looking to build and grow their wealth in the years ahead. Motley Fool Canada 2019
