Freenet SA, known in the US by the OTC ticker symbol FRTAY, is a mid-cap telecom services company, operating in the communication services business sector in Germany. This is my first report on Freenet for this Viital portfolio or any of my previous six dog of the week portfolios.

German mobile communication and mobile Internet company Freenet AG operates as an independent service provider without its own network. Freenet AG was founded in 2005 and is headquartered in Büdelsdorf, Germany. The company distributes mobile communications tariffs and options throughout Germany, using a subscription agreement and multi-brand strategy.

The company has three operating segments: (1) Mobile communications, (2) TV and media and (3) Other/holding.

The Mobile communications segment generates almost all of the firm's revenue. This segment offers a product portfolio of voice and data services for mobile communication operators. It also buys mobile communications services from the network operators and sells them to its end customers.

The company provides its services under the Mobilcom debitel, GRAVIS, MEDIA BROADCAST, klarmobile.de, Freenet ENERGY, vitrado.de, FUNK, Freenet BASICS, Freenet MOBILE, Freenet VIDEO, Freenet.de, Freenet FLEX, Freenet TV, waipu.tv, CARMADA, The Cloud, and Freenet Business brands.

It operates approximately 520 Mobilcom-debitel shops and 40 GRAVIS stores. The company sells its products through approximately 400 electronics stores, as well as online platforms.

Three key data points gauge any dividend equity or fund such as Freenet AG:

(1) Price

(2) Dividends

(3) Returns

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

FRTAY Price

Freenet’s price per share was $13.80 as of yesterday's market close. One year ago its price was $12.35. Therefore, Freenet’s share price rose $1.45 or about 17.3% in the past year.

If Freenet’s stock trades in the range of $12.00 to $18.00 this next year, its recent $13.80 share price might rise by $2.70 to reach $16.50 by April 22, 2023. My $2.70 upside estimate is $0.03 less than the average annual price increase over the past 21 months since Freenet instituted its annual dividend payout.

FRTAY Dividends

Freenet’s most recently declared annual dividend of $0.8820 is payable May 24th to shareholders on record as of May 6th.  So there is time to collect this one.

As mentioned, Freenet paid its first annual dividend in July 30, 2020. The dividend has been variable between $0.98 and $0.88 over the past 2 years and is currently estimated to deliver a 6.39% annual yield per yesterday’s price.

FRTAY Returns

Adding a $0.88 FRTAY annual dividend to the estimated one-year price upside of $2.70 shows a $3.58 potential gross gain, per share, to be reduced by any costs to trade FRTAY shares.

At yesterday's $13.80 closing price per share, a little under $1000 would buy 72 shares.

A $10 broker fee (if charged) would be paid half at purchase and half at sale and might cost us about $0.14 per share.

Subtract that maybe $0.14 brokerage cost from my estimated $3.58 gross gain estimate per share results in a net gain of $3.44 X 72 shares = $247.68 for a 24.77% net gain on a $993.60 investment.

So it is that Freenet AG (FRTAY) shows a possible 24.77% net gain including a 6.39% forward looking dividend yield.

Over the next year at this time our $1000 investment in FRTAY might generate $63.90 in cash dividends alone. Note that a single share of FRTAY stock bought at yesterday's $13.80 price is just just over four and one-half times less than the anticipated dividend income from our $1000.00 invested. So, by my dogcatcher ideal, this may be the right time to buy FRTAY shares based on their declared 2022 dividend. The forthcoming dividend from $1K invested is currently 4.63 times greater than yesterday's single share price. Consider yourself alerted. It's a sign. Go for the dividend; this one is declared.

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