Image Source: PixabayDeutsche Telekom (DTEGY) 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 from four to three operators.Aside from its two core markets, Deutsche Telekom also has operations in several Central European countries and holds an IT arm (Systems Solutions).The company was incorporated in 1995 and is headquartered in Bonn, Germany.Three key data points gauge DTEGY or any dividend-paying firm.The key three are:(1) Price(2) Dividends(3) ReturnsThose three keys also best tell whether any company has made, is making, and will make money.DTEGY PriceOver the past year, Deutsche Telecom’s share price rose 37% from $21.60 to $29.61 as of Friday’s market close.In the past 10 years, the company’s share price has never been less than $11.82 nor higher than $30.10.If shares trade in the range of $15.00 to $35.00 this next year, the recent $29.61 share price might grow to $31.70. Of course, DTEGY’s price could also drop about the same $2.09 estimated amount or more.My $2.09 upside estimate is slightly more than the median of one-year target prices estimated by the 2 analysts tracking the stock for brokersDTEGY DividendDeutsche Telecom has paid variable annual dividends since July 1997. Its most recent $0.82 Annual dividend was declared on April 9th for shareholders of record on April 12th, and the dividend was paid out on April 22nd. A forward-looking $0.82 annual dividend yields 2.77% at Friday’s $29.61 closing price.DTEGY ReturnsPutting it all together, a $2.91 estimated annual gross gain per share shows up by adding Deutsche Telecom’s $0.82 estimated annual dividend to the estimated price upside of $2.09, making that $2.91 gross gain.A little over $1000 buys 34 shares at the $29.61 price.A $10 broker fee (if charged), paid half at purchase and half at sale, could take about $0.29 per share out of the $2.91 gross gain to give us a net gain of $2.62 X 34 shares = $89.08 for about a 9% estimated net gain for the year.Furthermore, the $27.70 estimated annual dividend income from $1K invested is almost $2.00 less than the $29.61 share price. By these numbers, DTEGY is an overpriced dividend dog.Thus, you might choose to wait to pounce on DTEGY when its price falls below $28.60. It is a 29-year-old annual dividend-paying German-based telecom with a 27-year record of paying dividends.The exact track of DTEGY’s future price and dividend will entirely be determined by market action.Remember the true value of any stock is best realized through personal ownership of shares.More By This Author:Current Report: First Interstate BancSystem
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