Current Analysis: Telenor
Image Source: Pixabay
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 ASA or any dividend-paying firm.
The key three are:
(1) Price
(2) Dividends
(3) Returns
Those three basic keys best tell whether any company has made, is making, and will make money.
TELNY Price
Over the past year, Telenor ASA share price fell 3.6% from $11.30 to $10.89 as of Thursday’s market close.
If Telenor ASA shares trade in the range of $10 to $13 this next year, its recent $10.89 share price might rise to $12.00 by next year. Of course, TELNY’s price could drop about the same $1.11 estimated amount, or more.
My annual upside estimate of $1.11 however, is $0.08 more than the median of one year price estimates fro two analysts tracking TELNY for brokers.
TELNY Dividend
Telenor ASA has paid variable dividends since June, 2002 and changed the mode to semi-annual in 2015. Telenor’s recent SA dividend of $0.47 was declared February 7th to shareholders of record May 9th. The payout is to be made May 30th.
A forward looking $0.90 annual dividend yields 8.26% at Thursday’s $10.89 share price.
TELNY Returns
To put it all together, add Telenor ASA’s estimated annual dividend of $0.90 to the estimated price upside of $1.11 to find a $2.01 gross gain.
At Thursday’s $10.89 share price, a little over $1000 would buy 92 shares.
A $10 broker fee (if charged), paid half at purchase and half at sale, would cost us about $0.11 per share.
Subtracting that likely $0.11 brokerage cost from the $2.01 gross gain produces a net gain of $1.90 X 92 shares = $174.80 for a 17.4% estimated net gain.
You might choose to pounce on Telenor ASA. It is a 169 year old dividend paying Norwegian based telecom. Furthermore, the estimated $82.60 annual dividend income from $1k invested is over 7.5 times greater than Telenor’s recent $10.89 single share price.
The exact track of the Telenor ASA’s ongoing future price and dividend will be determined by market action.
Remember the true value of any stock is best realized through personal ownership of shares.
More By This Author:
Current Analysis: SoftBank
Current Analysis: PLDT
Current Analysis: KDDI Corp
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 ...
more