Lately, it seems that I can’t get through a week without one of my holdings announcing a dividend increase. Yesterday, BCE Inc. announced they were increasing their dividend by 5.3%. The dividend is supported by strong profitability (Q4 profit was up over 10%) due to a growing number of Internet and television subscribers. Bell provided guidance for their 2015 revenue growth (1-3%) and EPS of between $3.28 - $3.38 (vs $3.18 in 2014).
I’ve held BCE shares for years, and think right now the company is a little expensive (P/E approaching 20X, dividend yield of 4.4%). That said, I have to figure out a plan to move my shares of BCE held in my RRSP to my taxable account, as part of my portfolio transformation to minimize taxes. My thinking is that I’ll soon sell my RRSP shares, and wait a while (a minimum of 31 days to avoid a taxable capital gain) in hopes that I can pick up the shares cheaper. With a whole year to accomplish the move, I’m in no rush and can wait to see how things develop for BCE.
There’s nothing else exciting to report this week. As long as the dividend increases keep coming, I’ll be a very happy investor.