Today, we focus on a situation that may be of interest to value-oriented investors who favour dividend-paying stocks. On Feb. 4, the board of BCE Inc. declared a 43.5-cent per common share quarterly dividend. That works out to a 6-per-cent annualized prospective yield based on recent closing prices. A week after the company published the dividend news, director Robert Brown bought 20,000 shares in the public market at $28.93.
Given that directors are the ultimate authority on a company's dividend policy, it is an encouraging sign to see this type of buying at the firm.
It is also worth noting that there has been no company director or officer (SEDI codes 4 or 5) public-market selling at BCE during the past 6 months.
Disclaimer:
Ted Dixon is CEO of INK Research which provides insider news and knowledge to investors. Investments profiled are from a recent edition of the Morning INK report which is distributed daily to subscribers and clients of select financial institutions. INK staff may hold shares in profiled securities.
Graph Footnote:
Chart reflects public-market transactions of common shares or unit trusts by company officers and directors.