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Deutsche Telekom AG, ticker DTEGY, is a large-cap telecom services company in the communication services business sector. It is the fourth of five communication services candidates vying to be the second selected for my Viking folio. This is not my first report on DTEGY. I have discussed it previously and even selected DTEGY for one of my previous, portfolios.

Deutsche Telekom is the incumbent telecom operator in Germany and remains the dominant player in both mobile and fixed markets.

It also owns a controlling stake in T-Mobile US—one of three primary wireless carriers in the United States—which merged with Sprint in 2020, consolidating the market.

Aside from its two core markets, Deutsche Telekom also has operations in several Central European countries and holds an IT arm (Systems Solutions) and a tower business (GD Towers).

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

Three key data points gauge Deutsche Telekom AG:

(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’s price per share was $17.10 at Monday’s market close. In the past year, DTEGY’s share price fell by $1.86 or about 10%.

If Deutsche’s stock trades in the range of $15.00 to $25.00 this next year, its recent $17.10 share price might reach $22.00 by next year. My upside increase estimate of $4.90 is $1.73 under the average price upside forecast by 1 analyst tracking the stock of his brokerage house.
 

DTEGY Dividends

Deutsche’s most recently declared an annual dividend of $0.69 per share casts a yield of 4.06%.
 

DTEGY Returns

Adding the $0.69 annual Deutsche Telekom dividend to my one-year price upside estimate of $4.10 shows a $4.79 potential gross gain per share.

At today’s $17.10 closing price, a little under $1000 would buy 58 shares.

A $10 broker fee (if charged), paid half at purchase and a half at the sale, might cost us $0.17 per share.

Subtracting that maybe $0.17 brokerage cost from my estimated $4.79 gross gain per share results in a net gain of $4.62 X 58 shares = $267.96 for a 26.8% net gain including a 4.06% annual yield.

In a year our $1K investment in shares of Deutsche Telekom AG could generate $40.60 in cash dividends. Of course, a single share of DTEGY stock at today's $17.10 price is under half the annual dividend income from our $1000.00 investment.

So, by my dogcatcher ideal, this is a good time to buy DTEGY shares based on their dividends for the year 2022. The dividend from $1K invested is 2.37 times over yesterday’s single share price. Consider yourself alerted. Now is the time.

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

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