BCE Stock is one of the stocks I mentioned in this morning’s investing strategy notes before markets open. Looking at the BCE stock chart for the past 6 months we can see that the recent high made just when the company announced record earnings and bumped the dividend has been rejected and the stock has been in a downtrend since.
Much of the downside is being caused by the fears of interest rate increases in the United States. A lot of Telecom companies trade based on their dividend payouts as BCE has a big payout of $2.60 annually for the next 12 months. However investors always worry about interest rates and BCE like the other two major Canadian Telecom stocks, Rogers and Telus, is being pressured despite the dividend.
This downside in BCE Stock is setting up some very interesting trades that could end up being quite profitable. Understanding how to approach a decline in a stock like BCE goes a long way to earning above average returns while controlling risk to capital invested. This is paramount in a market filled with zig-zags and potential for large losses.
This BCE Stock strategy article is for Canada members only. It is 1500 words in length and will require 7 pages if printed.
How To Approach The BCE Stock Pullback
FullyInformed Canada Members can read this BCE Stock trade ideas and strategy discussion directly through this link or they can sign in to the full Canada members site here. Non-members can join here or read about the benefits of joining FullyInformed Canada.
Disclaimer: There are risks involved in all investment strategies and investors can and do lose capital. Trade at your own risk. Stocks, options and investing are risky and can result in considerable losses. None of the strategies, stocks or information discussed and presented are financial or trading advice or recommendations. Everything presented and discussed are the author’s own trade ideas and opinions which the author may or may not enter into. The author assumes no liability for topics, ideas, errors, omissions, content and external links and trades done or not done. The author may or may not enter the trades mentioned. Some positions in mentioned stocks may already be held or are being adjusted.
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