1 perfect dividend stock 34% to buy and keep forever

When it comes to perfection, it can be difficult to decipher which dividend stock that brand could actually meet. Yet it might not be what you think. In fact, when it comes to real perfection of buy A dividend stock, you want to find one thing: value.

Finding undervalued dividend shares can really mean that finding a company in investing that provides income in the short term and long -term growth. And when it comes to that kind of perfection, BCE (TSX: BCE) Fits the bill.

Reliable income

The main reason that BCE shares offers long-term growth is the dividend profile. Although the dividend share indeed kept an eye on its dividend, it pays around $ 1.75 per share annually, which yields around 5.4% from writing. That is why even with the cut it still pays more than most Blue-Chip Canadian Dividend shares. In fact, the comfortably guaranteed investment certificates (GICs) gives a run for their money.

Moreover, the dividend payment is now supported by Free Cash Flow (FCF). In fact, during the second quarter of 2025 years to year, FCF grew to $ 1.15 billion. Even better, the management again confirmed that it would grow by 6% to 11% FCF for the entire year. And with capital expenditures (Capex) Trending Down and Asset Sales Recycling Capital, the dividend is better than ever before.

Reset to growth

The reset does not only mean a dividend cut. BCE has now moved for cash at hand and future growth. For example, it sold its MLSE interest for $ 4.5 billion, which financed the purchase of Ziply Fiber. This left a non-core active and went to projects with a high return.

And the efficiency indeed looks high. Ziply Fiber extends the fiber footprint to a growth market with increasing demand for broadband. Although there are risks, it can add a huge long -term scale. Then there is Bell Artificial Intelligence (AI) structure, which plants up to 500 megawatts of water -powerful intelligence centers of hydroelpages. These use one of the fastest -growing infrastructure themes. Add his digital first media arm, with an increase of 29% due to subscriptions and digital advertising income with 9%, and BCE looks like a solid growth game.

Still valuable

Now for the best part. This dividend share looks more valuable than ever before. Shares will fall by around 34%in the past year, with pressure on profit, high leverage and legal headwind. Now the dividend shares act near multi-Coren lows, at 11.8 times income.

But with a beta of 0.68, BCE falls into the wider market sales instead of a justified decrease. That is why the investors can give a defensive profession. And now, with the Bank of Canada that lowers the rates to 2.5%, the BCE debt burden looks even more manageable. However, investors will have to look at $ 37.6 billion carefully, with a debt / equity ratio of more than 200%. But if FCF remains strong, refinancing can be positive.

Bottom Line

BCE stock is not a turnaround story that looks like an almost perfect purchase. It offers a dividend Proceeds of more than 5%, improving FCF and a defensive market position. That dividend could yield $ 382 of an investment of $ 7,000 from writing!

But beyond dividends there is an enormous growth of AI infrastructure and fibers in the future. For investors who want a buy-and-hold dividend share, BCE fits especially at this valuable price.