Daily Stock Analysis: Telecom Argentina

Photo by Galen Crout on Unsplash 

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

Telecom Argentina SA offers its customers quadruple play services, combining (1) mobile telephony services, (2) cable television services, (3) Internet services, and (4) fixed telephony services.

It also provides other telephone-related services such as international long-distance and wholesale services, data transmission, and IT solutions outsourcing, installing, operating, and developing cable television and data transmission services.

The company provides services in Argentina (mobile, cable television, Internet and fixed and data services), Paraguay (mobile, Internet, and satellite TV services), Uruguay (cable television services), and the United States (fixed wholesale services).

The company was formerly known as Cablevisión S.A. and changed its name to Telecom Argentina S.A. in January 2018.

Telecom Argentina S.A. was founded in 1979 and is based in Buenos Aires, Argentina.

Three key data points gauge Telecom Argentina SA:

(1) Price

(2) Dividends

(3) Returns

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

TEO Price

TEO’s price per share was $5.85 at Wednesday’s market close. In the past year, TEO’s share price increased by $0.69, or about 13.6%.

If TEO’s stock trades in the range of $3.60 to $7.20 this next year, its recent $5.85 share price might reach to $5.90 by next year. That upside estimate of $0.05 is about 1.46 above the median of one-year target estimates from four analysts covering TEO for brokers.

TEO Dividends

TEO’s most recent Annual dividend of $0.314 casts a yield of 5.37%.

TEO Returns

Adding the $0.314 annual estimated TEO dividend to my one-year price upside estimate of $0.05 reveals a $0.36 potential gross gain per share.

At Wednesday’s $5.85 closing price, a little over $1000 would buy 171 shares.

A $10 broker fee (if charged), paid half at purchase and a half at the sale, might cost us about $0.06 per share.

Subtracting that maybe $0.06 brokerage cost from my estimated $0.36 gross gain makes a net gain of $0.30 X 171 shares = $51.30 for a 5.1% net gain including a 5.37% annual dividend yield.

In the next year, our $1K investment in shares of Telecom Argentina SA would generate $53.70 in cash dividends. Of course, a single share of TEO stock at Wednesday's $5.85 price is about 9 times less than the estimated annual dividend income from our $1000.00 investment.

So, by my dogcatcher ideal, this may be a good time to buy TEO shares based on their dividends for 2023. The current dividend from $1K invested is about 9.2 times greater than the TEO single share price. Consider yourself alerted. The dividend could be cut.

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

More By This Author:

Stock Analysis: AT&T
Current Report: Orange (ORAN)
Daily Stock Analysis: Magellan Midstream Partners (MMP)

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, ...

How did you like this article? Let us know so we can better customize your reading experience.


Leave a comment to automatically be entered into our contest to win a free Echo Show.