Was BCE’s dividend cut a buying opportunity? It’s increasingly looking that way

on money

BCE Inc.’s share price is up nearly 14 per cent since May, making it the latest example of a company whose stock rebounded after negative news.

Many of us embrace companies that pay attractive dividends and increase the payouts at least once a year. But should we pay more attention to companies that cut their dividends?

I know, the question sounds a bit crazy.

But with BCE Inc.’s share price up nearly 14 per cent since May, when the Canadian telecom giant slashed its quarterly distribution by more than half, the stigma associated with the dividend cut is losing some of its edge.

And the interesting thing is, BCE is not an isolated example of a stock that has rebounded on bad news.

During the lockdowns in 2020, a number of Canadian companies cut their payouts to preserve c