In the case of perfection, it may be exhausting to decipher which dividend inventory might really meet that mark. But it won’t be what you suppose. In reality, relating to actual perfection from shopping for a dividend inventory, you’ll need to discover one factor: worth.

Discovering undervalued dividend shares is what can really imply discovering an organization to spend money on that gives short-term revenue and long-term development. And relating to that sort of perfection, BCE (TSX:BCE) suits the invoice.

Reliable revenue

The principle motive that BCE inventory provides robust long-term development is its dividend profile. Whereas the dividend inventory did certainly slice its dividend, it pays about $1.75 per share yearly, yielding round 5.4% as of writing. Subsequently, even with the lower, it nonetheless pays greater than most blue-chip Canadian dividend shares. In reality, it comfortably offers assured funding certificates (GICs) a run for his or her cash.

What’s extra, the dividend payout is now being supported by free money movement (FCF). In reality, throughout the second quarter of 2025, FCF grew 5% 12 months over 12 months to $1.15 billion. Even higher, administration reaffirmed that it could develop 6% to 11% FCF for the total 12 months. And with capital expenditure (capex) trending down and asset gross sales recycling capital, the dividend is roofed higher than ever earlier than.

Reset in direction of development

The reset doesn’t simply imply a dividend lower. BCE has now repositioned itself for money available and future development. For example, it offered its MLSE stake for $4.5 billion, which funded the Ziply Fiber buy. This exited a non-core asset and moved in direction of high-return tasks.

And the returns certainly look excessive. Ziply Fiber expands the fibre footprint right into a development market with rising demand for broadband. Whereas there are dangers, it might add enormous long-term scale. Then there’s Bell synthetic intelligence (AI) Material, which plans as much as 500 megawatts of hydro-powered synthetic intelligence information centres. These faucet into one of many fastest-growing infrastructure themes. Add on its digital-first media arm, with Crave up 29% by means of subscriptions and digital advert income up 9%, and BCE is wanting like a strong development play.

Nonetheless beneficial

Now for one of the best half. This dividend inventory appears extra beneficial than ever earlier than. Shares are down about 34% within the final 12 months, with strain on earnings, excessive leverage, and regulatory headwinds. Now, the dividend inventory trades close to multi-year lows, at 11.8 occasions earnings.

But with a beta of 0.68, BCE falls into the broader market sell-off reasonably than a warranted drop. Subsequently, it may give traders some defensive attraction. And now, with the Financial institution of Canada slicing charges to 2.5%, BCE’s debt burden appears much more manageable. Nevertheless, traders might want to watch the $37.6 billion debt rigorously, with a debt-to-equity ratio over 200%. But if FCF stays robust, refinancing could possibly be constructive.

Backside line

BCE inventory is just not a turnaround story that’s wanting like a near-perfect purchase. It provides a dividend yield of over 5%, enhancing FCF, and a defensive market place. That dividend might usher in $382 from a $7,000 funding as of writing!

However past dividends, there’s enormous development sooner or later from AI infrastructure and fibre. For traders who desire a buy-and-hold dividend inventory, BCE suits the invoice, particularly at this beneficial value.