Most investors are familiar with BCE (TSX:BCE) as one of Canada's big telecoms. The one-time darling of dividend investors has seen its stock price decline over the past year. This also begs the question, is BCE stock still a good buy, or should investors sell it now?

Let's try to answer that question

All about BCE stock (and its current problems)

BCE operates both a media business and offers traditional telecom services. Those services are subscriber-based and include wireless, wireline, TV, and internet services to customers across the country.

In recent years, those segments have become increasingly defensive and necessary. This is thanks to the growing need for a fast, stable mobile and home internet connection. At the same time, rising costs also took a toll on the ad revenues stemming from BCE's media business.

In short, operating a telecom is a very expensive business that requires massive amounts of capital to fund growth and a myriad of programs. As interest rates surged, the cost of servicing that existing debt rose, as did the cost of taking on any new debt.

As a result, BCE was forced to slash costs, which included a smaller annual dividend increase last year, and a series of deep cuts announced earlier this year across its media business.

Let's talk results

Earlier today, BCE announced results for the third fiscal. In that quarter, BCE reported EBITDA growth of 2.1% when compared with the same quarter last year. The company also reported free cash flow of $832 million, reflecting a 10.3% increase over the prior period.

Overall, the company reported a net loss of $1.2 billion in the quarter, reflecting a decrease of $1.9 billion over the prior period. The decline was largely attributed to non-cash impairment charges leading back to BCE's media segment.

On a more positive note, BCE posted positive numbers for both its core wireless and internet subscriber activations. This includes 158,412 wireless and connected device activations and 42,415 internet subscriber activations.

Bell Media revenue also saw a 10.1% bump in revenue, and digital revenue surged 19% in the quarter.

What is BCE's solution (and what should you do?)

Recently, BCE sold off its share in Maple Leaf Sports & Entertainment (MLSE) for a whopping $4.7 billion. Investors were initially positive about this transaction, noting it could help pay down BCE's considerable debt.

But that's not what BCE did. The company instead acquired U.S.-based Ziply Fiber. The deal looks to bolster BCE's presence in the U.S. fiber market, which remains underserved. Ziply has a presence across 4 U.S. states with over 1.3 million connections. The company is also on track to see that number hit 3 million in the next few years.

BCE also decided to pause its annual dividend upticks. As of the time of writing, this leaves BCE's quarterly dividend at an inflated if not insane 10% yield.

Is BCE stock a good buy?

No stock, even a top defensive pick (as BCE historically was viewed as) is without some risk. In the case of BCE, the company's wide defensive moat remains one of the few advantages (albeit smaller) that the company still holds.

That being said, BCE still offers some long-term appeal to existing investors and an opportunity to purchase a small position at a very discounted rate for new investors.

In my opinion, a small position in BCE is warranted as part of a larger, well-diversified portfolio.