Magyar Telecom Transmits Good Voice, Data, Electricity, & Gas
This week my Safari portfolio seeks a company in the communication services sector.
That sector has companies that connect us electronically in either of two ways: telecommunications, or pay TV.
Today I'm reviewing a telecom company named Magyar Telecom Telecommunications Public Limited Company It's trading ticker symbol is MYTAY.
Magyar Telecom PLC is one of the largest telecommunication service providers in Hungary. It mainly provides fixed line services and mobile communication services to individuals and businesses.
Additionally, the company provides electricity and natural gas services. The company was founded in 1991 and is headquartered in Budapest, Hungary. Magyar Telekom Telecommunications PLC is a subsidiary of Deutsche Telekom Europe B.V.
I use three primary keys to gauge dividend equities or funds like Magyar Telecom (MYTAY):
(1) Price
(2) Dividends
(3) Returns
After those three, I'll use four more keys to unlock an equity or fund in which to invest.
The first three keys, though, best test whether a company has made, is making and will make money.
MYTAY Price
Magyar Telecom's price at Friday's market close was $9.57 per share. The company has made money for investors. One year ago its price was $8.76. So it's a gained $0.81 per share in the past year. If MYTAY does as well in 2018 its price will increase from $9.57 to $10.38 per share or about 8.5%.
MYTAY Dividends
Magyar Telecom's most recent annual dividend was $0.4537 declared in May, and paid out May 31st.
The annual dividend for 2018 is estimated as $0.45 payable in May.
The yield from a $0.45 dividend will be 4.7% at Friday's $9.57 price
Gains For MYTAY?
Adding the $0.45 dividend to my $0.81 estimated year over year price gain shows a potential $1.26 gross gain for the coming year.
But there is a cost to trade Magyar Telecom shares. A $1,000.00 at Friday's $9.57 closing price would buy of 104 shares.
Those 104 shares will be hit with a broker fee of $5 at purchase and another $5 at sale for a brokerage cost of about $0.096 per share
Subtracting that $0.096 brokerage cost from the estimated $1.26 gross gain shows a net gain to 2019 of $1.164
X 104 shares
= $121.05
or a 12% net gain on our $995.28 investment.
Therefore, Magyar Telecom (whose ticker symbol is MYTAY), shows a possible 12% gain by my simple year over year calculation with a 4.7% dividend included.
No analysts cover this stock but its price trajectory over the past five years has been flat.
These forward-looking numbers are conjecture based on past year performance. The actual results remain to be seen. They could turn out to move lower. More study is required for you to determine if Magyar Telecom Telecommunications Public Limited Company is worth your time and money.