BCE Inc’s Preferred Shares Trade at 40% Discount, Common Shares Dip Slightly

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BCE Inc’s Preferred Shares Trade at 40% Discount, Common Shares Dip Slightly
Credit: © Reuters.

On Tuesday, BCE (NYSE: BCE ) Inc's Series AF Preferred Shares (TSX: BCE-PRF.TO) were traded at a minimum of $14.83, marking a significant 40% discount compared to their liquidation preference amount. The convertible preferred shares offer an attractive yield of over 6.5% through an annualized quarterly dividend of $0.9663. This is particularly notable considering the company's positive track record of raising its dividend for 14 consecutive years, as pointed out by InvestingPro Tips.

This trading activity comes with a detailed one-year performance chart and a dividend history chart, which provides historical payments on these preferred shares. The sizable discount and the high yield make these shares an interesting prospect for investors looking for income generation. According to InvestingPro data, BCE Inc 's dividend yield as of Y2023.D276 stands at a considerable 7.81%, further solidifying the company's appeal for income-focused investors.

Meanwhile, BCE Inc's common shares (TSX: BCE.TO) experienced a minor dip on Tuesday, down approximately 0.3%. This slight downward movement aligns with the broader market trends observed on the same trading day. InvestingPro data indicates that the company's 1 Week Price Total Return as of Y2023.D276 was -4.88%, reflecting the recent market volatility.

The trading nuances between the preferred shares and common shares of BCE Inc exhibit a distinct dynamic within the company's stock portfolio. As such, investors may find value in differentiating between these two types of shares based on their investment goals and risk tolerance. In fact, InvestingPro Tips suggests that the company's stock generally trades with low price volatility, making it a potentially suitable option for risk-averse investors.

For investors interested in further insights and tips, InvestingPro offers a wealth of additional information. For instance, it highlights that BCE Inc. is a prominent player in the Diversified Telecommunication Services industry and has maintained dividend payments for an impressive 53 consecutive years. For more such insights, consider exploring the InvestingPro product that includes a total of 13 tips for BCE Inc.

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