Deutsche Telekom: Share in focus - dividend strength and risks in view

Deutsche Telekom: Share in focus - dividend strength and risks in view

According to a report by www.aktienwelt360.de, the shares of Deutsche Telekom (WKN: 555750) have experienced an impressive turnaround and have once again become the favorite of small investors. The successful development of the US subsidiary T-Mobile US (WKN: A1T7LU) made a significant contribution to this.

The company's dependence on the US market is now clearly noticeable, as 77% of sales are generated abroad, of which 66% come from US business. Nevertheless, the dividend announcement for the 2023 financial year and the planned dividend increases until 2027 have sent positive signals to investors.

The strong dividend policy signals a respectable dividend yield of 3.6% for the coming year, which could rise to 5.2% by 2027. Nevertheless, uncertainties remain due to the dependence on the US market, particularly due to the sensitivity of customers to price fluctuations.

In the third quarter of 2023, Deutsche Telekom had to record a decline in sales of 8.7% in the US market, while its European business was impressive with an increase of 5.2%. The stock's valuation with an expected P/E ratio of 12.2 makes it appear neither expensive nor cheap.

Despite the stock's positive momentum and multi-year highs, investors should be prepared for possible unforeseen risks. The analysts' next price target is 25 euros, but black swans on the stock market should not be ignored.

It remains to be seen how Deutsche Telekom will deal with the uncertainties in the US market and whether it can develop new growth drivers to satisfy investors in the long term.