The Globe and Mail reports in its Tuesday edition that these are not happy times for telco heavyweight BCE. Globe columnist Gordon Pape writes that once a pillar of stability -- a classic "widows and orphans" play, now nobody speaks affectionately of BCE anymore. Instead, the company is blasted for high prices, mass layoffs and gutting its media staff across Canada and globally. The share price has dropped 28 per cent in the past year and the yield has risen to 8.6 per cent. Investors are concerned the company may freeze or even cut it. That has never happened, but there is always a first time. Investors should not worry, according to RBC analyst Drew McReynolds and associate Ryan Conrad. In a research report released last week, they suggest the company's free cash flow should be adequate to support the dividend. Free cash flow was $85-million in the quarter, below the consensus estimate of $273-million. "We believe BCE is well-equipped to navigate a slower revenue environment leaning on a scale advantage, continued FTTH [Fibre to the Home] investment and internet market share gains, the realization of cost efficiencies, and an extensive array of tactical initiatives across wireless, wireline and media," they wrote.
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