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5mo ago

BCE Reduces Dividend by 56% and Partners with PSP Investments for U.S. Fiber Expansion

The telecom giant cuts its annualized dividend to $1.75 per share and sells a 51% stake in a new fiber venture to PSP Investments to reduce debt and fund growth.

Bell Canada head office is seen on Nun's Island, Wednesday, August 5, 2015, in Montreal. A bill meant to force big tech companies to compensate Canadian media for news content appearing on their platforms is back in the spotlight amid BCE Inc.'s decision to slash 1,300 positions, including six per cent of its media arm. THE CANADIAN PRESS/Ryan Remiorz
Bell signage is seen at BCE Inc., headquarters in Montreal on Wednesday, May 7, 2025. THE CANADIAN PRESS/Christopher Katsarov

Overview

  • BCE has lowered its annualized dividend from $3.99 to $1.75 per share, aligning payouts with free cash flow and addressing its $30 billion debt load.
  • The company reported Q1 net earnings of $630 million, up from $402 million a year earlier, while revenue declined slightly to $5.93 billion.
  • BCE finalized a deal to sell a 51% stake in its new U.S. fiber expansion venture, Network FiberCo, to PSP Investments, which will invest over $1.5 billion to grow the network.
  • The partnership aims to expand Ziply Fiber’s network from 1.3 million to up to 8 million potential locations, with BCE retaining full ownership of existing operations.
  • CEO Mirko Bibic cited economic uncertainty, regulatory challenges, and intense market competition as key factors behind the dividend cut and strategic restructuring.