BCE Inc.

AI-generated fair value estimate for this company.

Method: Preferred dividend perpetuity: BCE Series AA cumulative redeemable preferred, trading on TSX (BCE.PR.A) at C$21.35 with a current C$1.235 annual dividend (5.78% quoted market yield, par C$25.00); dividend converted to USD at an assumed 0.72 USD/CAD rate = $0.889; discounted as a perpetuity at a 7.5% required yield to reflect BCE's weakened credit profile.

Reasoning: Series AA is a perpetual fixed-dividend instrument, so its fair value is best captured by discounting its known cash dividend in perpetuity rather than a DCF; using 7.5% instead of the quoted 5.78% TSX yield reflects added OTC illiquidity and BCE's 2025 common-dividend cut, which raises the appropriate required return for USD-quoted OTC holders of this series.