The Telco Wake-Up Call: Why Are They Failing Dividend Investors?

We take a hard look at what went wrong with BCE—and what it means for dividend investors. But this isn’t just about one company. It’s a full post-mortem on the Canadian and U.S. telco industry.

Let’s explore how high-yield “deluxe bonds” like BCE, AT&T, and others began to falter. Learn how to spot the red flags before it’s too late, and which sectors could take the place of telcos.

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You’ll Learn

The BCE Breakdown
BCE’s dividend cut was a major blow for Canadian investors. Mike walks through how years of poor management and unsustainable financials led to this outcome.

Red Flags Investors Missed

Dividend increases despite weak growth and mounting debt were major warning signs.
Mike compares BCE’s decline to Algonquin’s and explains how relying on a good narrative can blind investors to financial reality.

Industry-Wide Insights
This isn’t just a BCE story—it’s a deep dive into the telco sector in both Canada and the U.S. From Rogers to AT&T, listeners get a full picture of what’s still working, what’s recovering, and what to avoid.

The Trouble With “Deluxe Bonds”

Telcos used to be seen as stable, high-yield stocks.
But rising interest rates, heavy capital needs, and weak growth have broken the model.

Is There Still Hope for Telus or Quebecor?

Mike evaluates Telus’ improving cash flow and Quebecor’s momentum.
Each has strengths—but also lingering risks depending on the investor’s goals and expectations.

What Can Replace Telcos?
Utility stocks, pipelines, REITs, and even some financials may offer income and stability—but none are perfect substitutes. Mike emphasizes looking at the numbers, not just the yield.

Diversification as Damage Control
Having a 2–3% position in BCE is a different story than having 15%. Mike reminds listeners that proper allocation is key to surviving disappointments.

Real Lessons From a Real Loss
Numbers don’t lie. This episode closes with a reminder to stay curious, skeptical, and focused on sustainable financials—not comforting stories.