BCE – $BCE Inc (BCE.CA)$ currently doesn’t earn enough in fr...

BCE – $BCE Inc (BCE.CA)$ currently doesn’t earn enough in free cash flow to cover its generous 7%+ dividend. That’s causing a lot of people to question the sustainability of the payout. But the company also spends billions each year in capex, which can be ratcheted down if needed. It also has millions of customers paying dependently each month and decades of experience squeezing fees out of those customers. I’m optimistic over time.
IGM Financial – $TSX (LIST4001.CA)$ is famous for being the parent of Investors Group, a very 20th century wealth manager. But IGM has pivoted of late, making large investments in things like insurance giant Great-West Life, fintech darling Wealthsimple, and China’s largest asset manager. Its 6%+ yield is safe.
Slate Grocery REIT – $Slate Grocery REIT (SGR.UN.CA)$ is often on these lists, likely because it pays a 10%+ yield. But the payout ratio was 80% of funds from operations in 2023, a very manageable number. Slate also posted strong lease spreads last year, which should translate into additional earnings in 2024.