BCE Inc. (BCE) Dividend De-Risked, BMO Capital Raises to Outperform

BCE Inc. (NYSE:BCE) ranks among the best telecom stocks to invest in. On December 11, BMO Capital upgraded BCE Inc. (NYSE:BCE) from Market Perform to Outperform, retaining a C$37 price target on the company’s shares. The increase represents a “relatively more attractive risk/reward profile” for the company.

BCE’s dividend has been “derisked with reasonable FCF payout ratios,” according to BMO Capital, easing a major worry for investors in the high-yield telecom industry. The firm believes that by combining modest growth, synergies, a lowering capital expenditure profile, and small-scale asset sales, BCE Inc.(NYSE:BCE) may meet its leverage goals.

BCE Inc. (NYSE:BCE) also performed well in the third quarter of 2025, thanks to strategic acquisitions and collaborations. The company’s total revenue climbed by 1.3%, mainly due to the acquisition of Ziply Fiber. In addition, its adjusted EBITDA increased by 1.5% while maintaining a good margin of 45.7%. The sale of a $5.2 billion interest in MLSE significantly increased net earnings, while adjusted EPS increased by 5.3% year-over-year.

BCE Inc. (NYSE:BCE) is a communications company that provides wireless, wireline, internet, streaming services, and television services to residential, business, and wholesale customers in Canada.

While we acknowledge the potential of BCE as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: 10 Best Magic Formula Stocks for 2025 and 10 Best Retirement Stocks to Buy According to Hedge Funds.

Disclosure: None. This article is originally published at Insider Monkey.