Daily Stock Analysis: Deutsche Telekom

Deutsche Telekom AG, known by the ticker symbol DTEGY, is a large cap telecom services firm in the Communication Services business sector. This is my first report on DTEGY for my Viital stock portfolio and it was selected as the thirty-third pick for my Vista portfolio.

Deutsche Telekom is Germany's incumbent telephone company and offers integrated telecommunication services, fixed and mobile, in several countries. The company was founded in 1995 and is headquartered in Bonn, Germany.

gray metal tower with accessories

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Apart from Germany and the U.S., the company operates in other European countries like Greece, the Netherlands and Poland among others. The firm's strategy has been to increase its scale, improve operations through digitalization and invest in its networks.

Deutsche Telekom AG has a collaboration with VMware, Inc. on a 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. 

Three key data points gauge dividend equities like Deutsche Telekom AG (DTEGY): (1) Price (2) Dividends (3) Returns.

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

DTEGY Price

Deutsche Telekom AG's price per share was $19.27 as of yesterday's market close. One year ago its price was $16.00. So, DTEGY's share price increased by just over 20% in the past year.

If DTEGY's stock trades in the range of $15 to $25.00 this next year, its recent $19.27 price will likely rise by $4.73 to reach $24.00 by October 22, 2022. My estimate is $2.27 less than the one-year target estimate by the analyst who tracks the stock for a broker. 

DTEGY Dividends

Deutsche Telekom AG's most recent Annual dividend of  $0.7149 was paid out on April 15, to shareholders. That annual payout yields 3.71% based on yesterday's $19.27 closing price. DTEGY has paid regular variable annual dividends since July 1997. That's 24 years. 

DTEGY Returns

Adding the $0.71 annual estimated DTEGY forward-looking dividend to my $4.73 price upside estimate shows a $5.44 potential gross gain, per share, to be reduced by any costs to trade DTEGY shares.  

At yesterday's $19.27 price per share, a little over $1000 would buy 52 shares.

A $10 broker fee (if charged) would be paid half at purchase and half at sale and might cost us about $0.19 per share.

Subtract that maybe $0.19  brokerage cost from my estimated $5.44 gross gain per share results in a net gain of $5.25 X 52 shares = $273.00 for a 27.25% net gain on a $1,002.04 investment.

So it is that Deutsche Telekom AG (DTEGY) shows a possible 27.25% net gain including a 3.76% forward estimated dividend yield. 

Over the next year at this time, a $1000 investment in Deutsche Telekom AG (DTEGY) could generate $37.60 in cash dividends alone. And a single share bought at yesterday's closing price was $19.27! Thus, DTEGY's share price is $18.27 less than the dividend income from $1000.00 invested. So, according to my dogcatcher ideal, now is the time to pick up DTEGY shares. The estimated next year's dividend from $1k invested is nearly two times greater than the single share price. Consider yourself alerted. It's a sign! 

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 market value.

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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