#Canada #dividends #Montreal #preferred shares #BCE Inc.

BCE Inc. Reports Series AI and AJ Preferred Share Conversions

On July 22, 2026, BCE Inc. (TSX: BCE, NYSE: BCE) revealed a significant update regarding its floating-rate Cumulative Redeemable First Preferred Shares, Series AJ (commonly referred to as Series AJ). This announcement signifies an important financial maneuver for the company, which is poised to bolster its shareholder returns through a strategic conversion initiative.

Effective August 4, 2026, all Series AJ Preferred Shares will undergo a one-for-one conversion to fixed-rate Cumulative Redeemable First Preferred Shares, designated as Series AI. This decision comes after BCE previously notified shareholders on June 16, 2026, about their options to convert between these series. In total, a substantial number of preferred shares were involved in this process:

• - 1,875 Series AI Preferred Shares opted for conversion to Series AJ.
• - 1,976,448 Series AJ Preferred Shares converted to Series AI, raising concerns due to the remaining Series AJ stock.

As a result of these conversions, it is anticipated that the total number of outstanding Series AJ Preferred Shares will drop below the 2,000,000 threshold. Consequently, any remaining Series AJ shares that have not been converted will be automatically transitioned into Series AI Preferred Shares on the effective date. This streamlined conversion process is a testament to BCE's commitment to enhancing shareholder value and maintaining a robust liquidity position.

For shareholders who opted to convert their Series AI Preferred Shares, BCE will ensure they receive certificates reflecting the number of newly converted Series AI shares issued post-conversion, processed by TSX Trust Company.

Another highlight of the Series AI shares is the introduction of a fixed cash dividend, establishing a stable financial framework for investors. The Board of Directors of BCE has declared an annual fixed dividend rate of 5.10% for these shares, payable on a quarterly basis. As shareholders transition to the new Series AI Preferred Shares, this predictable cash inflow marks a strategic shift in BCE's financial architecture, aiming to maintain competitive positioning in the markets.

This conversion initiative exemplifies BCE’s dedication to enhancing its capital structure while optimizing returns for its valued shareholders. As Canada’s largest communications company, BCE continues to innovate and evolve, delivering advanced technological solutions across fibre and wireless networks, enterprise services, and digital media. The focus remains on providing unparalleled service to clients and ensuring their engagement in an increasingly digital world.

In conclusion, BCE's proactive approach towards the conversion of its preferred shares marks a pivotal moment, reinforcing its financial stability and illustrating its responsiveness to shareholder interests. Moving forward, BCE remains dedicated to leveraging its scope of operations and market position to foster sustainable growth and profitability. Shareholders can view upcoming developments through BCE’s official channels, keeping them informed and engaged in the company’s journey.