BCE Inc. (TSX:BCE)(NYSE:BCE) shareholders are getting another raise after the company announced it is increasing its quarterly dividend to 71.75 cents per share, a 5.1% hike.
2017 marks the ninth consecutive year BCE has increased its payout. The dividend has increased from 36.5 cents per quarter in 2008 -- when the company reinstated the dividend after a plan to take the company private was scrapped -- to 71.75 cents today. That’s growth of just over 7% annually.
BCE also released solid fourth quarter earnings. It reported an adjusted profit of $667 million in the quarter, an 8.5% increase versus last year. Revenue was up 1.8%, which is the company’s best quarterly income increase since the third quarter of 2015.
BCE’s wireless division added 112,000 postpaid subscribers, which beat analyst expectations. It also added 18,000 internet subscribers and lost a net 1,000 TV subscribers. Home phone continued to be weak; BCE lost 100,000 landline subscribers.
The company did forecast somewhat tepid growth for 2017, with one notable exception. It does expect to close on its proposed acquisition of Manitoba Telecom sometime in the first quarter. Both companies are still waiting for government approval, which is expected shortly. This deal alone will boost the top line by close to $1 billion.
The market wasn’t overly impressed with BCE’s results, selling off shares in Thursday’s trading. BCE is down 1.5% to $57.52, close to the 52-week low of $56.29. The current dividend yield is 4.75%.
