Then and now – Bell Canada

Then and now – Bell Canada

This post is an update on my investing history to date with Bell Canada (BCE) stock.

This post is a continuation of my series Then and Now where I revisit some older blogposts and either rip them to shreds (because my thinking has changed) or I’ll confirm my position on some personal finance topics or specific investments.

You can check out my previous posts in this series here:

Bank of Montreal

Bank of Nova Scotia

H&R REIT

Enbridge

Then

• I started writing about BCE stock and buying it in the early days of this blog – in 2010.
• I hinted that BCE stock was going to be a good long-term company to own when I considered some Canadian dividend stock selections were somewhat easy.
• Many years ago, after noticing this major telco (along with others like Telus and Rogers) make some serious money year-after-year, I decided to invest in this company.
• Based on the historical juicy dividends delivered by this company, I believed BCE along with our other major telecommunications stocks can make a great home in registered accounts (like TFSAs, RRSPs) because you can reinvest dividends tax-free or tax-deferred.
• I also believed this stock along with many other Canadian stocks are a solid, tax-efficient way to invest thanks to the Canadian Dividend Tax Credit.
• I bought BCE because it’s a core holding of most Canadian Exchange Traded Funds (ETFs) and big bank equity mutual funds.  I figure if they own hundreds of thousands or millions or shares then maybe I should own some too!!
• I bought BCE because I wanted to participate in the capital growth and dividend raises it has historically delivered shareholders.  I was banking on more dividend increases to come…

Now

• At the time of this post, BCE is trading just above a 52-week low, around $58 per share.
• At the time of this post, BCE looks like a good buy/good price to buy more shares.
• Since I started investing in this stock, dividends have increased nicely – here is brief look at just the last few years.

Table thanks to BCE.

• As recently as this year, I bought some more BCE stock inside my TFSA.  BCE stock is now DRIPping along for us – two (2) shares are reinvested every quarter inside this account for more growth.

BCE growth chart thanks to TMX.

Long-term, I believe BCE stock will provide us with both higher dividend income and capital appreciation. Thanks to being a patient shareholder the tax-free monies earned inside our TFSA and inside other accounts, from BCE stock alone, are almost enough to pay for our cell phone bills – for an entire year.

BCE is yielding close to 5% now and they continue have a whack of free cash flow. That means, over the next few years dividends should continue to rise and rising dividends – as you know – help drive our portfolio.  Long BCE.

What do you think about my BCE purchase to buy and hold? What telcos do you own?  Or, do you own telcos indirectly via a Canadian ETF?

Mark

My name is Mark Seed - the founder, editor and owner of My Own Advisor. As my own DIY financial advisor, I'm looking to start semi-retirement soon, sooner than most. Find out how, what I did, and what you can learn to tailor your own financial independence path. Join the newsletter read by thousands each day, always FREE.