Bell Canada parent BCE is raising its dividend by 5% and using surplus cash to bolster its balance sheet as the telecom giant predicts strong growth ahead.
The Montreal-based telecommunications company said Thursday it will boost its annual dividend by 5% to $2.17 per share for 2012, the seventh such increase in the past three years. The increased dividend will begin with BCE’s first-quarter payout, on April 15 next year.
“This reflects our confidence in delivering on our business plan, based on the Bell team’s strong execution of our strategic imperatives and reinforced by a healthy balance sheet with ample liquidity,” president and CEO George Cope said in a statement.
“We have the financial flexibility to reward shareholders, while supporting significant ongoing capital investment in Bell’s broadband networks and services.”
BCE said Bell Canada’s expected revenue growth will remain unchanged from prior guidance at between nine and 11%, while the parent company’s adjusted earnings per share should rise to a range between $3.10 and $3.15 from earlier guidance of $2.95 to $3.05.
