Telekom stock: Your opportunity in 2024?
Today, we are focusing on Deutsche Telekom AG, a company that has continued to perform excellently despite global uncertainties. Get ready for in-depth insights and analysis that can help you evaluate the stock.
Growth despite global challenges Deutsche Telekom AG has shown impressive growth on both sides of the Atlantic. Its solid dividend policy and share buyback programs allow investors to directly benefit from its success. With a Morningstar dividend yield of 3.1% and a stable payout ratio of 40 to 60%, the company presents an attractive option for dividend portfolios.
The expansion of 5G technology and fiber connections is progressing, with Deutsche Telekom in Germany and T-Mobile US in the US leading the way. The 5G market is growing rapidly, and the number of subscriptions is expected to reach 5.3 billion worldwide by 2029.
Six-month chart of Deutsche Telekom AG Strong! Deutsche Telekom AG has almost reached a new multi-year high. (Source: Stock Screener)
Resilience in difficult times Compared to the overall business climate, the digital sector has shown more resilience. Despite macroeconomic influences such as inflation and rising interest rates, the industry remains relatively robust. This is reflected in the increasing number of customers and profits for Deutsche Telekom in the third quarter.
T-Mobile US, a key pillar of the group, impresses with its network leadership and well-thought-out pricing concept. The recently announced dividend payments and share buybacks strengthen its competitive position.
Future prospects Deutsche Telekom AG has already raised its forecasts for 2023 and 2024, indicating strong growth in all business areas. The focus on the US market and further network expansion in Germany will continue to drive growth.
Geopolitical tensions, particularly the trade dispute between the US and China, could however strain supply chains. Uncertainty about the use of Chinese network components remains a risk factor.
Conclusion Despite some uncertainties, Deutsche Telekom AG remains a strong market player. Thanks to continuous investments in future technologies and a solid financial strategy, the stock is likely to continue to offer attractive returns. A rise above the multi-year high could be another buying signal.