Telekom Shares Surprise Market with Announcement on Dividend and Profit
Deutsche Telekom's Capital Market Day, held in Bonn on October 10 and 11, 2023, has resulted in a significant boost for the company. The event saw the telecommunications giant announcing plans for share buybacks worth up to €2 billion in 2025 and an increase in the dividend to €0.90 per share for 2024.
The announcements made during the Capital Market Day have been well-received, causing Deutsche Telekom's stock to move slightly higher in initial trading. The company's share price has reached its highest level in 23 years, trading above €27.
The strong performance of Deutsche Telekom's US operations, as shown by T-Mobile US's quarterly earnings per share of $2.84, beating analyst estimates, and revenue increasing by 6.9% year-over-year to $21.13 billion, is a significant factor in the company's success.
In addition to the share buybacks and increased dividend, Deutsche Telekom also expects to generate an additional €1.5 billion in earnings from additional offerings, including from the AI sector.
It is worth noting that the board of the publisher Boersenmedien AG, Mr. Leon Mueller, holds a position in Deutsche Telekom. The conflict of interest note for both Boersenmedien AG and the publication Boersenmedien AG mentions Deutsche Telekom. The CEO and majority shareholder of Boersenmedien AG, Mr. Bernd Foertsch, also holds a position in Deutsche Telekom.
Various publications have been optimistic about Deutsche Telekom's stock, with BÖRSE ONLINE setting a price target of €30 for the company. On average, analysts see a potential upside of 18.6% for Deutsche Telekom's stock, with an average price target of €31.60.
The fund manager, in the publication "Fund manager reveals: These stocks are being unfairly overlooked by investors," also mentions Deutsche Telekom as a stock that is being overlooked by investors. Another publication, "P/E ratio well below 10 - Investing in mega-cheap stocks with ETFs," also mentions Deutsche Telekom.
Deutsche Telekom's WKN is 555750. The company has been improving its balance sheet by large asset sales, such as the majority sale of GD Towers, generating over €10 billion cash proceeds to reduce liabilities, potentially strengthening its financial flexibility for future dividends or buybacks.
While there is no explicit evidence of new share buyback programs or changes to the dividend policy directly announced at the October 2023 Capital Market Day in the search results, the company's strong performance and positive announcements have certainly caught the attention of investors. For more current or precise details specifically from the October 10-11, 2023 event, it is advised to perform a focused search on Deutsche Telekom’s official communications or filings immediately after that date.
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