■ Cut · July 28, 2026
BCE Slashes Dividend, Pivots to AI and Fiber for Future Growth
BCE cut its dividend by over 50% to fund debt reduction and AI infrastructure investments, as revenue from AI solutions surges 113%.
Dividend Reset and Financial Position
BCE Inc. (TSX: BCE) reduced its annual dividend from C$3.99 per share to C$1.75, a move that frees up cash for debt reduction and capital investments. At a share price near C$30.30, the new payout yields approximately 5.6% to 5.8%. The company reported a 4% year-over-year revenue increase to C$6.2 billion in its most recent quarter, with adjusted EBITDA up 2.9% to C$2.6 billion. Free cash flow rose 0.8% to C$804 million, sufficient to cover the reduced dividend.
Growth Beyond Telecom
BCE's pivot is evident in non-traditional segments. Bell Business Markets revenue grew 9.7%, driven by a 113% surge in AI-powered solutions. Internet revenue jumped roughly 15% following the Ziply Fiber integration, and streaming service Crave saw subscriptions rise 25% to 4.7 million. The company is leveraging cloud infrastructure and AI-driven enterprise services to diversify beyond its mature wireless operations.
AI Data Center Investment
BCE plans a 300-megawatt AI data centre in Saskatchewan, requiring approximately C$1.3 billion in additional capital spending in 2026. This investment will lower near-term free cash flow guidance. With substantial existing debt, the path to reliable dividend growth remains uncertain.
What it means for income investors
BCE's 5.6% yield is supported by a mix of fibre, wireless, streaming, cybersecurity, and AI infrastructure. The company's dividend history shows a recent cut, and the payout ratio remains elevated. For those tracking BCE's dividend, the dividend calculator can help project income under the new payout.
Reporting based on: NAI500. Figures verified against market data where available.