(MENAFN- Baystreet.ca) BCE Inc. (TSX:BCE)(NYSE:BCE) is a top, blue-chip stock that has proven to be a very stable investment over the years. Year to date, the share price has risen by more than 13% and in five years it is up by more than 25%, all while paying a great dividend as well.
Currently, BCE pay investors a yield of around 5.2%, but what makes it even more appealing is that those payouts have increased over the years and are likely to continue to do so. For dividend investors, that means the amount of dividend income you're earning every year is likely to increase.
And so that yield effectively gets bigger over time, as long as you hold onto the investment.
Today, the stock pays out 79.25 cents every quarter per share, and that's grown from just 61.75 cents five years ago. That's an increase of 28%, for a compounded annual growth rate of 5.1%.
If the company were to increase dividends by 5.1% every year, that would mean your dividend payments would double in about 14 years. Meanwhile, you'd likely be benefiting from a rising share price in the process.
With BCE being an industry leader, it's a good investment option for risk-averse investors. The stock currently has a beta of less than 0.6, suggesting that it won't take investors on the wild swings that the market does.
Trading at a price-to-earnings ratio of 19, BCE provides investors with good value for their money while also giving them many opportunities to profit from owning the investment in both the short and long term.
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