Daily Stock Analysis: Deutsche Telecom (DTEGY)

Deutsche Telekom AG has the ticker symbol DTEGY and is a large cap member of the communication services sector as a telecom services company. This is my first report on Deutsche Telekom AG for this Vista folio or any of my five previous portfolios.  

Deutsche Telekom is Germany's incumbent telephone company and offers integrated telecommunication services, fixed and mobile, in several countries. 

Its U.S. business, T-Mobile, is among the largest wireless phone companies in the country, having recently acquired the fourth mobile provider, Sprint. 

Photo by Galen Crout on Unsplash 

Apart from Germany and U.S., the company operates in nine European countries. The firm's strategy has been to increase its scale (Sprint acquisition), improve operations through digitalization, and invest in its networks.

The company has 242 million mobile customers and 22 million broadband customers, as well as 27 million fixed-network lines. 

Deutsche Telekom AG has a collaboration with VMware, Inc. on cloud-based open and intelligent virtual RAN platform to bring agility to radio access networks for existing LTE and future 5G networks; and partnership with Microsoft to deliver high-performance cloud computing experiences. 

The company was founded in 1995 and is headquartered in Bonn, Germany.

Three key data points gauge dividend equities or funds like Deutsche Telekom AG (DTEGY):

(1) Price

(2) Dividends

(3) Returns

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

DETGY Price

Deutsche Telekom AG price per share closed at $19.44 yesterday. One year ago its price was $13.23 Price per share has increased about 47% from the middle of last year's Covid market slump. 

Should Deutsche Telekom AG stock trade in the range of $13.00 to $23.00 this year, its recent $19.44 price might rise by $2.56 to reach $22.00 by April 21, 2022. My estimate is however $0.39 lower than the estimate from the one analyst tracking the stock.

DETGY Dividends

Deutsche Telekom AG most recent declared an annual dividend, paid April 15th, was $0.715 which yields 3.68% at yesterday's $19.44 closing price. DTEGY has paid variable annual dividend amounts from July 2, 1997, to the present, that is, over the past 24 years

DETKY Returns

Adding the $0.72 annual DTEGY estimated dividend to my $2.56 price upside estimate shows a $3.28  potential gross gain, per share, to be reduced by any costs to trade the shares.  

If we put little under $1,000.00 today in Deutsche Telekom AG at $19.44 per share, we'd buy 51 shares of SPKKY stock.

A $10 broker fee (if charged) would be paid half at purchase and half at a sale and might cost us about $0.20 per share.

Subtract that maybe $0.20 brokerage cost from my estimated $3.28 gross gain per share results in a net gain of $3.08 X 51 shares = $157.08 for a 15.7% net gain on a $991.44 investment.

Thus, Deutsche Telekom AG (DTEGY) shows a possible 15.7% net gain including a 3.58% dividend yield. 

Over the next year at this time, a $1000 investment in DTEGY could generate $36.80 in cash dividends. And a single share bought at yesterday's closing price was under $20! So, if DTEGY is your kind of communication services telecom investment, their single share price is a little over half the annual dividend income from $1,000 invested. This suggests now is the time to consider adding Deutsche Telekom AG (DTEGY) to your holdings.

All of the estimates above are speculation based on the past history of Deutsche Telekom AG (DTEGY).  Only time and money invested in this stock will determine its worth.

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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