BCE bumps up dividend

Sitting on a mountain of more than $3 billion in cash and securities at the end of its fiscal year, BCE Inc. said Wednesday it is bumping up its common-share dividend.

The telecommunications company, owner of Bell Canada, told investors before the opening of stock markets it will bump its annual dividend by five per cent to $1.54 a share.

BCE declared a quarterly dividend of 38.5 cents a share.

The move came even as BCE reported a fourth-quarter loss of six cents a share, compared with a profit of $2.93 a share for the same quarter last year.

The most recent quarterly result included a loss of $372 million, or 47 cents a share, on investments, plus 14 cents a share for restructuring and other costs. The big profit a year earlier included a $2.3-billion gain from BCE's sale of satellite company Telesat.

Operating revenues at Bell Canada — BCE's main division — grew by 0.2 per cent to $3.8 billion in the quarter on growth in wireless, video and data income, while revenues from local landlines, long distance and equipment were down.

After the $52-billion takeover of BCE led by the Ontario Teachers' Pension Plan failed in late 2008, BCE said it would buy back shares and reinstate its dividend, which had been axed during the takeover attempt to save on cash.