Current Report: Orange (ORAN)

Orange SA bears the ticker symbol ORAN, and this is my first mention of ORAN for the new Viking Portfolio or for any of my previous Dog of The Week Portfolios.

Orange is the incumbent telecom operator in France, formerly known as France Telecom.

The company operates fixed and wireless businesses in France, where it is the market leader ahead of Iliad, Bouygues and SFR.

Orange also has fixed and wireless (convergent) operations in Spain, Poland, Belgium, Luxembourg and Central Europe (Romania, Slovakia, Moldova).

Around 15% of revenue comes from emerging African markets, where the company only operates wireless networks and 20% comes from the enterprise segment, which serves companies with more than 50 employees in France and internationally.

Orange S.A. markets its products and services under the Orange brand. The company was formerly known as France Telecom and changed its name to Orange S.A. in July 2013. It was founded in 1990 and is headquartered in Issy-les-Moulineaux, France.

Three key data points gauge Orange SA:

(1) Price (2) Dividends (3) Returns.

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

ORAN Price

Orange’s price per share was $10.57 at Friday’s market close. In the past year, Orange’s share price fell by $0.17 or about 1.6%.

If Orange’s stock trades in the range of $8.00 to $12.00 this next year, its recent $10.57 share price might reach $11.00 by next year. My upside estimate of $0.43 is exactly $0.94 under the median of one year target estimates from two analysts covering Orange for their brokers.

ORAN Dividends

Orange’s most recent Semi-Annual dividend of $0.3242 equates to about $0.64 annually to cast a yield of 6.05%.

ORAN Returns

Adding the $0.64 annual estimated ORAN dividend to my one-year price upside estimate of $0.43 reveals a $1.07 potential gross gain per share.

At Friday’s $10.57 closing price, a little over $1000 would buy 95 shares.

A $10 broker fee (if charged), paid half at purchase and half at sale, might cost us about $0.11 per share.

Subtract that maybe $0.11 brokerage cost from my estimated $1.07 gross gain makes a net gain of $0.96 X 95 shares = $91.20 for a 9.1% net gain including an 6.05% annual dividend yield.

In the next year our $1K investment in shares of Orange SA would generate $60.50 in cash dividends. Of course, a single share of ORAN stock at Friday's $10.57 price is near 6 times less than the annual dividend income from our $1000.00 investment.

So, by my dogcatcher ideal, this is a good time to buy ORAN shares based on their dividends for 2023. The current dividend from $1K invested is 5.72 times greater than the ORAN single share price. Consider yourself alerted.

All of the estimates above are speculation based on the past history of investment in shares of Orange SA Only time and money invested in this stock will determine its future market value.


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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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