Current Analysis: Telenor (TELNY)

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Telenor (TELNY) is an international provider of telecom, data, and media communication services.

It is the incumbent dominant telecom operator in Norway and the Norwegian government holds a stake of more than 50% in the firm.

Telenor also operates in other Nordic countries and owns several businesses in Asia. Most of Telenor's operations are mobile businesses, although it also has some fixed-line operations in Nordic European countries.

Telenor ASA was founded in 1855 and is headquartered in Fornebu, Norway.

Three key data points gauge Telenor or any dividend paying firm.

The key three are:

(1) Price

(2) Dividends

(3) Returns

Those three keys also best tell whether any company has made, is making, and will make money.
 

TELNY Price

Over the past year, Telenor’s share price increased about 7.5% from $10.90 to $11.72 as of Thursday’s market close.

If Telenor shares trade in the range of $10.00 to $15.00 this next year, its recent $11.72 share price might rise to $12.80 by next year. Of course, Telenor’s price could also drop about the same $1.08 estimated amount, or more.

My $1.08 upside is based on the median of two one year target estimates from analysts tracking Telenor for brokers.
 

TELNY Dividend

Telenor has paid dividends since June 2002. A recent $0.425 semi-annual dividend was declared February 7th for shareholders of record October 18th and is payable November 6. A forward looking $0.85 annual dividend yields 7.26% at Thursday’s closing price.
 

TELNY Returns

To put it all together, a $1.93 estimated one year gross gain per share shows up by adding Telenor’s $0.85 annual dividend to the estimated price upside of $1.08.

A little under $1000 buys 85 shares at $11.72 per share.

A $10 broker fee (if charged), paid half at purchase and half at sale, might take $0.12 per share out of the $1.93 gross gain to reveal a net gain of $1.81 X 85 shares = $153.85 for about a 15.4% estimated net gain on the year.

Furthermore, the $72.60 annual dividend income from $1K invested is over 6 times greater than the $11.72 single share price. By these numbers, Telenor may be an ideal dividend dog.

You might choose to pounce on Telenor ASA. It is a 139 year-old dividend-paying Norway-based telecom firm with a 22 year track record paying variable annual and semi-annual dividends.

The exact track of Telenor future price and dividend will entirely be determined by market action.

Remember the true value of any stock is best realized through personal ownership of shares.


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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 ...

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