BCE Inc. said profit rose 69 per cent in the fourth quarter, driven by a one-time gain along with growth at its wireless business.
Profit at Canada’s biggest telephone company climbed to $699-million, or 84 cents a share, in the three months ended Dec. 31, from $413-million, or 44 cents, in the year-earlier period. An investment gain of $412-million for the recognition of a future tax asset was a big contributor to the bottom line.
Revenue advanced 0.2 per cent to $4.55-billion in the quarter from $4.54-billion a year ago.
I purchased shares of BCE because my thoughts were that at my purchase price of $25.75 USD, the shares were significantly off of their highs from the previous month and approaching the 50-day moving average.
The attractive 4.40% Yield was also a factor in my purchase as it increased the yield of my portfolio.Â Although against the grain of my dividend growth theory, I believe there is room for capital growth due to the acquisition targets taht BCE may now have in their sights.Â One acquisition in particular is Manitoba Telecom Services (MBT.TO) , whose share price hasÂ rebounded due to the possibility of a takeover.
Here’s to hoping the street reacts positively to the BCE news today!