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After a two-year-long downturn, BCE (TSX:BCE) stock is showing signs of recovery. This telecom stock fell almost 39% to its 10-year low of $44, making even long-term investors wonder how low it could go. The stock saw a recovery of over 5% in the last 30 days. Does it mean the stock has bottomed out? While it is difficult to say if this rally is a recovery or just a temporary jump before another dip, it is a sign to load up on BCE stock.
Why has BCE stock been on a downtrend?
BCE stock has been falling for three reasons:
- Rising interest rates have made its debt expensive, putting pressure on its free cash flow (FCF). Thus, its dividend payout ratio was 113% of FCF in 2023.
- The Canadian Radio-television and Telecommunications Commission (CRTC) released a wholesale mandate in November 2023, asking BCE and Telus to provide competitors access to their network at wholesale rates. While the…
