BT Group Price Swoons Overseas

This week I'm seeking a prestigious and long-term dividend-paying stock from the communications services sector. 

That sector has companies that connect us electronically in either of two ways: telecommunications, or pay TV. Some do both. Like this one:

Today I'm reviewing a large-cap telecom institution named BT Group PLC. Its trading ticker symbol is BT.

BT Group PLC is a provider of telecommunications networks and services. It sells fixed-voice, broadband, mobile and TV products and services to consumers in the UK.

Consumer segment sells telephones, baby monitors, and Wi-Fi extenders through high street retailers, online BT Shop, and Website BT.com

The company's EE segment offers 2G, 3G, and 4G mobile network services; broadband, fixed-voice, and TV services; and postpaid and prepaid plans, and emergency services network.

Its Business and Public Sector segment provides fixed voice, mobility, fiber and connectivity, and networked IT services.

The company's Global Services segment offers business communications and ICT services.

Its Wholesale and Ventures segment enables communications providers and other organizations to provide fixed or mobile phone services.

The company's Openreach segment engages in the provision of services over the local access network. 

The company was formerly known as Newgate Telecommunications Limited and changed its name to BT Group plc in September 2001. BT Group plc was incorporated in 2001 and is headquartered in London, the United Kingdom.

I use three key data points to gauge the value of any dividend equity or fund likeBT Group PLC (BT): 

(1) Price

(2) Dividends

(3) Returns

Besides those three, four more keys will finally unlock an equity or fund in which to invest.

But those first three primary keys, best tell whether a company has made, is making, and will make money. 

BT Price

BT's price per share was $14.22 at yesterday's market close. A year ago its price was $18.94 for a loss of $4.75 per share.  

Assuming BT's price will trade in the range of $13 to $20 for the next year, perhaps BT can make up most of the previous year loss and move BT's current $14.22 price to $18.22 by early September 2019. 

BT Dividends

AT&T's most recent annual dividend was $0.71 declared August 2nd and payable Monday, September 10th. At this most recent pay rate,BTs annual dividend is yielding 5% at yesterday's closing $14.22 price.

Gains For BT?

Adding the $0.71 declared annual dividend to my $4 year over year estimated price gain estimate for BT makes a $4.71gross annual per share gain, which will be reduced by costs to trade the shares.  

A little under $1,000.00 invested today at the $14.22 recent price buys 70 BT Group PLC. (BT) shares. 

A $10 broker fee paid half at purchase and half at sale costs $0.14 per share, subtracting that $0.14 brokerage cost from the estimated $4.71 gross gain leaves a net gain of $4.57 X 70 shares = $319.90 or a 32% net gain on a $995.40 investment.

Therefore, BT Group PLCwhose trading ticker symbol is BT now shows a possible 32% net gain including a 5% dividend yield. 

Three brokers cover this stock:

One says "buy" BT

One says BT will "outperform" its peers.

One broker says "Hold" your position on BT.

Thus, the analyst consensus recommendation number is 2.0 or "outperform".

The median price target set by those thirty brokers is $1.46 over my $18.22 price number.

Here I am less optimistic than the UK brokers!  

I look at all those various numbers this way, BT Group PLC (BT) has made money, is making money, and could net a 32% net annual gain including a 5% dividend yield. It could be more, it could be less.

The above speculation is based on past year performance. Actual results remain to be seen. Those results will determine if BT Group PLC (BT) is worth your time and money.

Disclaimer: This article is for informational and educational purposes only and should not be construed to constitute investment advice. Nothing contained herein shall constitute a solicitation, ...

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