BCE update

In a recent post, I noted that BCE's payout ratio was high. The ratio I used was expected 2009 dividends over 2008 eps. TTM eps from 2009 Q2 are $2.096. Expected 2009 dividends per share are $1.305, and probably $1.40 thereafter because 2009 dividends have gone up twice and are now at $0.35/share/quarter. So, the payout ratio, given by $1.40 over TTM eps is 67%. That's not too bad. Another thing to consider is a non-operating charge in Q4 2008 of $267 million (which businessweek has listed as a loss on sale of investments), or $0.33/share. If you add that back to TTM eps, you get a payout ratio of 57.7%. There have also been on-going restructuring charges for the last TTM of about $0.40/share. At some point these will disappear, reducing the payout ratio even further.

A note of caution. Over the TTM, revenues are down. Eps are flat-ish because of a reduction in costs. I guess they fired people.

sources: retuers.com and businessweek.com