Daily Stock Analysis: Deutsche Telekom (DTEGY)

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Deutsche Telekom AG with the ticker DTEGY is a large-cap telecom services company operating in the communication services business sector. This is the third of five communication candidates competing for the forty-seventh slot in my Viital folio. It is my third report on DTEGY for my Viital portfolio. I last discussed it on January 19.

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 has 242 million mobile customers and 22 million broadband customers, as well as 27 million fixed-network lines.

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

Three key data points gauge any dividend equity or fund such as Deutsche Telekom :

(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 Telekom’s price per share was $18.76 as of yesterday's market close.  One year ago its price was $21.93. Thus, DTEGY’s share price collapsed by $3.17 or about 14.5% in the past year.

If Deutsche Telekom’s stock trades in the range of $16.00 to $25.00 this next year, its recent $18.76 share price might rise by $5.24 to reach $24.00 by next year. My $5.24 upside estimate is $0.98 below the median of one-year targets from the analysts covering DTEGY  for brokers.
 

DTEGY Dividends

Deutsche Telekom’s most recently declared an annual dividend of $0.69 was paid out on April 19th to shareholders on record as of April 8th.

Since July 5, 2017, DTEGY has paid annual variable dividends.  The current forward-looking annual dividend of $0.69 projects an annual yield of 3.7% as of yesterday's $18.76 share price.
 

DTEGY Returns

Adding the $0.69 DTEGY annual dividend to my estimated one-year price upside estimate of $5.24 shows a $5.93 potential gross gain, per share, to be reduced by any costs to trade DTEGY shares.

At yesterday's $18.76 closing price, a little over $1000 would buy 53 shares.

A $10 broker fee (if charged) would be paid half at purchase and half at sale and might cost us $0.19 per share.

Subtract that maybe $0.19 brokerage cost from my estimated $5.93 gross gain estimate per share results in a net gain of $5.74 X 53 shares = $304.22, for a 30.4% net gain including a 3.7% forward-looking annual dividend yield.

Over the next year, our $1K investment in Deutsche Telekom shares could generate $37.00 in cash dividends. Of course, a single share of DTEGY stock bought at yesterday's $18.76 price is almost 2 times LESS than the dividend income from our $1000.00 investment.

So, by my dogcatcher ideal, this prime time to pick up Deutsche Telekom shares based on their forward-looking dividends for the year 2022. The forecast annual dividend from $1K invested is 1.97 times greater than yesterday’s single share price. Consider yourself alerted. It's a sign. Now IS the time.

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


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Disclaimer: 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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