BCE stock price
BCE is trading near $35 per share at the time of writing. The stock is down from over $70 in early 2022 but is up from a $12-month low around $29.
Rising interest rates in 2022 and 2023 caused the initial decline in the stock price. The Bank of Canada has aggressively raised interest rates in an attempt to control inflation. BCE has a lot of debt on its balance sheet, so the sharp spike in borrowing costs raised concerns among investors that the impact on earnings and the reduction in cash flow would force BCE to cut its generous dividend.
BCE initially maintained the payout, expecting a drop in interest rates. The central bank started cutting interest rates in 2024 and 2025, but borrowing costs remained high.
On the operational side, declining advertising revenues at Bell Media put additional pressure on the company. This happened when communications providers also faced a price war for mobile and internet customers in 2024.
To free up some capital, BCE agreed in 2024 to sell its 37.5% stake in Maple Leaf Sports and Entertainment (MLSE) to Rogers Communications (TSX:RCI.B) for $4.7 billion. Analysts initially viewed the deal as a positive move for BCE, with expectations that the company would use the money to reduce debt. That didn’t happen.
In late 2024, BCE announced that it had agreed to spend $5 billion to acquire a US internet service provider, Ziply Fiber. Investors then found out in May last year that BCE cut its dividend. The stock was already under heavy pressure in the run-up to the announcement, as many analysts had predicted. The MLSE deal with Rogers closed in July 2025 and BCE closed its purchase of Ziply Fiber in August.
Possibility
Ziply Fiber gives BCE a growth platform in the United States, where there is more potential for expansion than in Canada. The price wars against Canadian mobile and internet plans subsided in 2025 as providers began to focus on rebuilding margins. Bell Media continues to cut staff to streamline the business, but there are also some green shoots in the group. BCE’s streaming service Crave is doing very well. The service saw a 26% increase in subscriptions in the fourth quarter compared to the same period in 2024, boosted by the global popularity of the Heated Rivalry series.
BCE also moves into the field of AI data centers and business AI services. Canadian companies want to keep their data in Canada. As AI expands, it could become a new growth driver for BCE.
The bottom line
Investors will need to be patient, but most of the risks should already be priced into the stock, and there is significant upside potential for years to come. In the meantime, you will now be paid a solid dividend yield of 5%, pending the recovery.
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