Bell, the telecom giant, is it a buy?

BCE is one of my core holdings but it has been on a race to the bottom, as of late. In fact, all the telecoms are dropping like proverbial stones. When BCE dipped below $49 recently, I should have added to my holding and averaged down. Maybe I will do it tomorrow as it closed today at $49.13. The Morningstar Analyst Report gives the stock a four star rating and yet many analysts I checked feel BMO is a hold. It is possible BCE is going to linger at the bottom for awhile longer. Many analysts seem to think so.

The yield today is 8.12% with a payout ratio hitting 117.19%. This payout ratio, found using WebBroker, is quite high but the number posted by Digrin is even higher -- an unbelievable 175%. Something is wrong here. These numbers are taking us into "Do you feel lucky, punk?" territory.

BMO hasn't reduced a dividend payment in years but past performance yah-da, yah-da, yah-da means don't believe such a move is off the table. DRG (dividend growth rate) is O.K. but not exciting. To put a dividend you believe you can trust into a retirement portfolio, a dividend yielding 8.12%, I am tempted to act and buy a little. BCE seems to present a buying opportunity, a too-good-to-be-true buying opportunity. So, do you, do we, feel lucky?