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Deutsche Telekom merged its T-Mobile USA  unit with prepaid specialist MetroPCS in 2013, and that firm merged with Sprint in 2020, creating the second-largest wireless carrier in the us,

T-Mobile (TMUS) now serves 77 million postpaid and 21 million prepaid phone customers, equal to around 30% of the us retail wireless market.

The firm entered the fixed-wireless broadband market aggressively in 2021 and now serves more than 5 million residential and business customers. In addition, T-Mobile provides wholesale services to resellers.

The company was founded in 1994 and is headquartered in Bellevue, Washington.

Three key data points gauge

TMUS 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.

TMUS Price

Over the past year, T-Mobil's share price rose over 55% from $141.67 to $219.78 as of Wednesday’s market close.

In the past 10 years, the company’s share price has never been less than $25.74 nor higher than $219.78.

If shares trade in the range of $175.00 to $230.00 this next year, the recent $219.78 share price might grow to $225.00. Of course, TMUS's price could also drop about the same $4.22 estimated amount or more.

My $4.22 price upside estimate is the opposite of the median of one-year target prices estimated by the 29 analysts tracking TMUS  stock for brokers. They expect TMUS's share price to drop $2.88 in the coming year.

TMUS Dividend

T-Mobil has paid variable quarterly dividends since November 2023. The company's most recent dividend of $0.88 was declared on September 18 for shareholders of record on November 27 with the payout as of December 12.

The $0.88 Q dividend pays  $3.52 per share annually for a yield of 1.60%.

TMUS Returns

Putting it all together, a $7.74 estimated annual gross gain per share shows up by adding TMUS’s annual $3.52 dividend to the estimated price upside of $4.22, making that $7.74 gross gain.

About $1100 buys 5 shares at Wednesday's $219.78 price.

A $10 broker fee (if charged), paid half at purchase and half at sale, could take about $2..00 per share out of the $7.73 gross gain to give us a net gain of $5.74 X 5 shares = $28.70 for about a 2.85% estimated net gain for the year.

Furthermore, the high price of shares is discouraging. By these numbers, and with a small dividend TMUS is a sickly dividend dog.

Thus, you should not pounce on TMUS.  It is a 30-year-old new dividend-paying Washington state-based telecom with a 2-year dividend record.

The exact track of TMUS’s future price and dividend will entirely be determined by market action and the company’s finances.

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

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