Today's Stock Analysis: Deutsche Telecom (DTEGY)
Deutsche Telecom AG, known by the ticker symbol DTEGY, is a large cap telecom services firm, operating in the communication services business sector. I have last reported on DTEGY as a candidate for my eleventh selection for this Portfolio on October 22, 2021. We still see the positives.
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.
Its U.S. business, T-Mobile, is among the largest wireless phone companies in the country, having recently acquired the fourth mobile provider, Sprint.
Apart from Germany and the U.S., the company operates in other European countries like Greece, the Netherlands or Poland among others. The firm's strategy has been to increase its scale (Sprint acquisition), improve operations through digitalization, and invest in its networks.
Deutsche Telekom AG has a collaboration with VMware, Inc. on 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.
Image Source: Pixabay
Three key data points gauge any dividend equity or fund such as Deutsche Telecom 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's price per share was $18.11 as of yesterday's market close. One year ago its price was $18.32. Therefore DTEGY share price fell $0.21 or just under 1.15% in the past year.
If Deutsche's stock trades in the range of $16.00 to $24.00 this next year, its recent $18.11 share price might rise by $4.89 to reach $23.00 by January 19, 2023. This estimate is $4.05 below the median of the 1 yr DTEGY price estimates from two analysts covering the stock for brokerages
DTEGY Dividends
Deutsche's most recent annual dividend of about $0.71 was paid to shareholders April 15th, 2021 to those of record April 6th. That A dividend payout, yields 3.95% per yesterday's $18.11. closing price.
Deutsche Telecom AG (DTEGY) has paid regular annual dividend payouts since June 5, 2000. That stretch saw 21 years last June.
DTEGY Returns
Adding the $0.71 annual estimated DTEGY forward-looking dividend to about half the median of two analysts' one-year share price upside estimates of $4.89 shows a $5.60 potential gross gain, per share, to be reduced by any costs to trade DTEGY shares.
At yesterday's $18.11 price per share, a little under $1000 would buy 55 shares.
A $10 broker fee (if charged) would be paid half at purchase and half at sale and might cost us about $0.18 per share.
Subtract that maybe $0.18 brokerage cost from my estimated $5.60 gross gain per share results in a net gain of $5.42 X 55 shares = $298.10 for a 29.9% net gain on a $996.05 investment.
So it is that Deutsche Telecom AG (DTEGY) shows a possible 29.9% net gain including a 3.95% forward estimated dividend yield.
Over the next year at this time a $1000 investment in Deutsche Telecom AG could generate $39.50 in cash dividends alone. Note that a single share of DTEGY stock bought at yesterday's closing price was $18.11. Therefore,DTEGYs share price is just under half the dividend income from $1000.00 invested. So, by my dogcatcher ideal, now is a good point to pickup Deutsche Telecom AG (DTEGY) shares. The estimated next-year dividend from $1K invested is nearly 2.18 times higher than DTEGY's single share price. Consider yourself alerted. It's a sign!
All of the estimates above are speculation based on the past history of Deutsche Telecom 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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