0834 ET - BCE is a valuable business, but its dividend policy is making it difficult to establish its true worth. In a Scotiabank report, Maher Yaghi says the embattled telecom "doesn't have a free cash flow problem; it has a payout ratio one." He thinks there's a disconnect between what a private or an operator would likely be willing to pay for BCE versus public markets, and it's significant. Yaghi says the disconnect could remain "as long as the distribution ratio remains in flux but eventually that spread will get captured if it stays on for too long." He adds that while the stock is under severe pressure, currently down 41% over the last 52-weeks at C$32.84, he thinks that there is a good buying opportunity for long-term, patient investors.(adriano.marchese@wsj.com)

(END) Dow Jones Newswires

January 17, 2025 08:34 ET (13:34 GMT)

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