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I’m primarily an exchange-traded fund (ETF) investor, as I prefer the simplicity and broad market exposure they offer over the intensive research required to pick individual stocks.
However, while identifying the next big winner can be challenging, spotting potential trainwrecks is often more straightforward for me. One stock on the TSX that I would advise caution with is BCE (TSX:BCE).
Despite its prominent status in the telecommunications sector, there are several reasons why I believe investing in BCE for dividends could be risky. Here’s why I would steer clear of it for the foreseeable future.
It’s addicted to debt
As quasi-utilities, telecom companies are typically burdened with high levels of debt due to their capital-intensive nature.
However, BCE’s financial profile raises particular concerns. The company has consistently prioritized boosting its already high dividend yield, often at the…
