Deutsche Telekom AG (DTEGY) is the incumbent telecom operator in Germany and remains the dominant player in both mobile and fixed markets. The company was incorporated in 1995 and is headquartered in Bonn, Germany.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 has 248 million mobile customers and 22 million broadband customers, as well as 26 million fixed-network lines. Three key data points gauge Deutsche Telekom AG or any dividend-paying firm. The key three are:(1) Price(2) Dividends(3) ReturnsThose three basic keys best tell whether any company has made, is making, and will make money. DTEGY PriceOver the past year, Deutsche’s share price rose 17% from $19.56 to $22.90 as of Friday’s market close.If DTEGY’s stock trades in the range of $18.00 to $28.00 this next year, its recent $22.90 share price might rise to $25.50 by next year. Of course, DTEGY’s price could drop about the same $2.60 estimated amount, or more.My upside estimate of $2.60, however, is about $0.16 lower than the median of one-year target prices estimated by two analysts tracking DTEGY for brokers. DTEGY DividendDeutsche Telekom AG has paid variable annual dividends since July 2, 1997. DTEGY’s most recent A dividend, of $0.77, was paid April 19, 2023 DTEGY ReturnsPutting it all together, we add the estimated forward looking dividend of $0.77 to my estimated price upside of $2.60 and find a $3.37 gross gain.At Friday’s $22.90 closing price, a little over $1000 would buy 44 shares.A $10 broker fee (if charged), paid half at purchase and half at sale, might cost us about $0.23 per share.Subtracting that likely $0.23 brokerage cost from the $3.37 estimated gross gain per share makes a net gain of $3.14 X 44 shares = $138.16 or about a 13.7% net gain.You might choose to pounce on DTEGY shares. Deutsche is an expanding and international telecommunications company, it is making money and gaining customers, furthermore the estimated $33.50 dividend income from $1k invested is 1.46 times greater than the price of a single share.Remember the true value of any stock is best realized through personal ownership of shares.More By This Author:Current Analysis: Juniper Networks
Current Analysis: Corning Incorporated
Current Analysis: Evertz Technologies (EVTZF)
