Deutsche Telekom: Shares on record – dividend attracts investors!

On February 10, 2025, Deutsche Telekom AG recorded an increase in its shares of 1.2 percent to EUR 33.32 in XETRA trading. The highest level of the day was reached at EUR 33.35. The opening price was EUR 33.11 and 2,563,598 shares have been traded so far. The 52-week high of EUR 33.35 was also achieved on February 10, 2025, while the 52-week low was EUR 20.73 on April 18, 2024, which is 37.79 percent below the current price. The dividend payout for 2023 was EUR 0.770, while the estimated dividend for 2024 is EUR 0.898. The analysts' average price target is EUR 37.64.

The following figures were published for the third quarter of 2024 at a financial conference held on November 14, 2024: Earnings per share were EUR 0.60 compared to EUR 0.39 in the previous year. Sales in Q3 2024 amounted to EUR 28.50 billion, representing an increase of 3.43 percent compared to the previous year. The fourth quarter 2024 balance sheet is expected on February 26, 2025, while the first quarter 2026 balance sheet is expected to be published on May 7, 2026. Experts forecast earnings per share of EUR 1.86 for 2024.

Dividend movements and buybacks

In addition, Deutsche Telekom is proposed a dividend of 0.90 euros per share for the 2024 financial year telekom.com reported. This proposal requires the approval of the general meeting and other legal conditions. The distribution will take place after the general meeting in April 2025 and is tax-free for shareholders in Germany. The board also plans to buy back its own shares worth up to 2 billion euros in 2024. This buyback is intended to offset the dilutive effect caused by the capital increase in 2021. A further share buyback of up to 2 billion euros for 2025 was also announced.

Deutsche Telekom's dividend policy envisages paying out 40 to 60 percent of the adjusted consolidated net profit per share as a dividend. Analysts expect a dividend of between 40 and 60 percent of earnings per share (EPS) in the coming years. The forecast earnings per share (adjusted) for the years 2024 to 2028 are as follows: €0.45 is expected for 2024, €1.87 in 2025, €2.10 in 2026, €2.39 in 2027 and €2.69 in 2028.

The dividend per share for the years 2024 to 2028 will be invested as follows: 2024: €0.90, 2025: €1.00, 2026: €1.13, 2027: €1.25 and 2028: €1.40. The dividend for the 2023 financial year was €0.77 per share, which corresponds to 48 percent of the adjusted earnings per share of €1.60. The distribution is made from the tax deposit account in accordance with Section 27 of the Corporate Tax Act, so it is tax-free for domestic shareholders, which reduces the tax acquisition costs of the shares.