Portfolio holding BCE Inc. (BCE) announced results today, something of a mixed bag, but increased its dividend yet again and gave a positive outlook.
BCE demonstrates how a stock can become a journey -- giving us twists and turns in ways unexpected.
I first bought BCE in August 2006 at US $23.01. At that time, it was a boring legacy phone business unappreciated by the markets. I liked that it paid a good dividend (even then), had some growth businesses in wireless and high-speed internet, and new management shedding non-essential businesses that was committed to rewarding shareholders.
Then BCE announced it was going to become an income trust, thereby enhancing its ability to reward shareholders. But the Canadian government changed the tax ramifications of income trusts, so that did away with that move.
Then the story changed again. BCE became a takeover target. In May 2007 I sold 25% of my holding for US $36.31, figuring it was a prudent thing to do if the "rumors" were nothing more than gossip.
Well, they weren't, as many will remember. Ontario Teachers' Pension Plan headed up a group that was going to buy BCE -- but the deal never got done.
So now? BCE recently has been trading a few cents above my original price. The dividend is around 4%. And it clocked in at 4.4% of portfolio assets as of June 30, 2009. All in all, I'm content. Plus I like owning this Canadian outfit with the US dollar facing an uncertain future.
I could sell this stock if a better idea came along. We'll see -- and you know I'll keep you posted.
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