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26.06.25 16:24:00 | Tech, Media & Telecom Roundup: Market Talk | ![]() |
Find insight on Deutsche Telekom, Cellnex, BT Group, and more in the latest Market Talks covering Technology, Media and Telecom. Continue Reading View Comments |
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19.06.25 15:39:01 | Every fusion startup that has raised over $100M | ![]() |
Revealing the Blanket and plasma inside the ITER Tokamak, International Fusion reactor. | Image Credits:John D / Getty Images Over the last several years, fusion power has gone from the butt of jokes — always a decade away! — to an increasingly tangible and tantalizing technology that has drawn investors off the sidelines. The technology may be challenging to master and expensive to build today, but fusion promises to harness the nuclear reaction that powers the sun to generate nearly limitless energy here on Earth. If startups are able to complete commercially viable fusion power plants, then they have the potential to upend trillion-dollar markets. The bullish wave buoying the fusion industry has been driven by three advances: more powerful computer chips, more sophisticated AI, and powerful high-temperature superconducting magnets. Together, they have helped deliver more sophisticated reactor designs, better simulations, and more complex control schemes. It doesn’t hurt that, at the end of 2022, a U.S. Department of Energy lab announced that it had produced a controlled fusion reaction that produced more power than the lasers had imparted to the fuel pellet. The experiment had crossed what’s known as scientific breakeven, and while it’s still a long ways from commercial breakeven, where the reaction produces more than the entire facility consumes, it was a long-awaited step that proved the underlying science was sound. Founders have built on that momentum in recent years, pushing the private fusion industry forward at a rapid pace. Commonwealth Fusion Systems With a $1.8 billion Series B, Commonwealth Fusion Systems catapulted itself into the pole position in 2021. Since then, the company has been quiet on the fundraising front (no surprise), but it has been hard at work in Massachusetts building Sparc, its first-of-a-kind power plant intended to produce power at what it calls “commercially relevant” levels. Sparc’s reactor uses a tokamak design, which resembles a doughnut. The D-shaped cross section is wound with high-temperature superconducting tape, which when energized, generates a powerful magnetic field that will contain and compress the superheated plasma. In Sparc’s successor, the commercial-scale Arc, heat generated from the reaction is converted to steam to power a turbine. CFS designed its magnets in collaboration with MIT, where co-founder and CEO Bob Mumgaard worked as a researcher on fusion reactor designs and high-temperature superconductors. Backed by Breakthrough Energy Ventures, The Engine, Bill Gates, and others, Devens, Massachusetts-based CFS expects to have Arc operational in the early 2030s. The company has raised a total of $2 billion, according to PitchBook. Story Continues TAE Founded in 1998, TAE Technologies (formerly known as Tri Alpha Energy) was spun out of the University of California, Irvine by Norman Rostoker. It uses a field-reversed configuration, but with a twist: after the two plasma shots collide in the middle of the reactor, the company bombards the plasma with particle beams to keep it spinning in a cigar shape. That improves the stability of the plasma, allowing more time for fusion to occur and for more heat to be extracted to spin a turbine. The company raised $150 million in June from existing investors, including Google, Chevron, and New Enterprise. TAE has raised $1.79 billion in total, according to PitchBook. Helion Of all fusion startups, Helion has the most aggressive timeline. The company plans to produce electricity from its reactor in 2028. Its first customer? Microsoft. Helion, based in Everett, Washington, uses a type of reactor called a field-reversed configuration, where magnets surround a reaction chamber that looks like an hourglass with a bulge at the point where the two sides come together. At each end of the hourglass, they spin the plasma into doughnut shapes that are shot toward each other at more than 1 million mph. When they collide in the middle, additional magnets help induce fusion. When fusion occurs, it boosts the plasma’s own magnetic field, which induces an electrical current inside the reactor’s magnetic coils. That electricity is then harvested directly from the machine. The company raised $425 million in January 2025, around the same time that it turned on Polaris, a prototype reactor. Helion has raised $1.03 billion, according to PitchBook. Investors include Sam Altman, Reid Hoffman, KKR, BlackRock, Peter Thiel’s Mithril Capital Management, and Capricorn Investment Group. Pacific Fusion Pacific Fusion burst out of the gate with a $900 million Series A, a whopping sum even among well-funded fusion startups. The company will use inertial confinement to achieve fusion, but instead of lasers compressing the fuel, it will use coordinated electromagnetic pulses. The trick is in the timing: All 156 impedance-matched Marx generators need to produce 2 terawatts for 100 nanoseconds, and those pulses need to simultaneously converge on the target. The company is led by CEO Eric Lander, the scientist who led the Human Genome Project, and president Will Regan. Pacific Fusion’s funding might be massive, but the startup hasn’t gotten it all at once. Rather, its investors will pay out in tranches when the company achieves specified milestones, an approach that’s common in biotech. Shine Technologies Shine Technologies is taking a cautious — and possibly pragmatic — approach to generating fusion power. Selling electrons from a fusion power plant is years off, so instead, it’s starting by selling neutron testing and medical isotopes. More recently, it has been developing a way to recycle radioactive waste. Shine hasn’t picked an approach for a future fusion reactor, instead saying that it’s developing necessary skills for when that time comes. The company has raised a total of $778 million, according to PitchBook. Investors include Energy Ventures Group, Koch Disruptive Technologies, Nucleation Capital, and the Wisconsin Alumni Research Foundation. General Fusion Now its third-decade, General Fusion has raised $440.53 million, according to PitchBook. The Richmond, British Columbia-based company was founded in 2002 by physicist Michel Laberge, who wanted to prove a different approach to fusion known as magnetized target fusion (MTF). Investors include Jeff Bezos, Temasek, BDC Capital, and Chrysalix Venture Capital. In an General Fusion’s reactor, a liquid metal wall surrounds a chamber in which plasma is injected. Pistons surrounding the wall push it inward, compressing the plasma inside and sparking a fusion reaction. The resulting neutrons heat the liquid metal, which can be circulated through a heat exchanger to generate steam to spin a turbine. General Fusion hit a rough patch in spring 2025. The company ran short of cash as it was building LM26, its latest device that it hoped would hit breakeven in 2026. Just days after hitting a key milestone, it laid off 25% of its staff. Tokamak Energy Tokamak Energy takes the usual tokamak design — the doughnut shape — and squeezes it, reducing its aspect ratio to the point where the outer bounds start resembling a sphere. Like many other tokamak-based startups, the company uses high-temperature superconducting magnets (of the rare earth barium copper oxide, or REBCO, variety). Since its design is more compact than a traditional tokamak, it requires less in the way of magnets, which should reduce costs. The Oxfordshire, UK-based startup’s ST40 prototype, which looks like a large, steampunk Fabergé egg, generated an ultra-hot, 100 million degree C plasma in 2022. Its next generation, Demo 4, is currently under construction and is intended to test the company’s magnets in “fusion power plant-relevant scenarios.” Tokamak Energy raised $125 million in November 2024 to continue its reactor design efforts and expand its magnet business. In total, the company has raised $336 million from investors including Future Planet Capital, In-Q-Tel, Midven, and Capri-Sun founder Hans-Peter Wild, according to PitchBook. Zap Energy Zap Energy isn’t using high-temperature superconducting magnets or super-powerful lasers to keep its plasma confined. Rather, it zaps the plasma (get it?) with an electric current, which then generates its own magnetic field. The magnetic field compresses the plasma about 1 millimeter, at which point ignition occurs. The neutrons released by the fusion reaction bombard a liquid metal blanket that surrounds the reactor, heating it up. The liquid metal is then cycled through a heat exchanger, where it produces steam to drive a turbine. Like Helion, Zap Energy is based in Everett, Washington, and the company has raised $327 million, according to PitchBook. Backers include Bill Gates’ Breakthrough Energy Ventures, DCVC, Lowercarbon, Energy Impact Partners, Chevron Technology Ventures, and Bill Gates as an angel. Proxima Fusion Most investors have favored large startups that are pursuing tokamak designs or some flavor of inertial confinement. But stellarators have shown great promise in scientific experiments, including the Wendelstein 7-X reactor in Germany. Proxima Fusion is bucking the trend, though, having attracted a €130 million Series A that brings its total raised to more than €185 million. Investors include Balderton Capital and Cherry Ventures. Stellarators are similar to tokamaks in that they confine plasma in a ring-like shape using powerful magnets. But they do it with a twist — literally. Rather than force plasma into a human-designed ring, stellarators twist and bulge to accommodate the plasma’s quirks. The result should be a plasma that remains stable for longer, increasing the chances of fusion reactions. Marvel Fusion Marvel Fusion follows the inertial confinement approach, the same basic technique that the National Ignition Facility used to prove that controlled nuclear fusion reactions could produce more power than was needed to kick them off. Marvel fires powerful lasers at a target embedded with silicon nanostructures that cascade under the bombardment, compressing the fuel to the point of ignition. Because the target is made using silicon, it should be relatively simple to manufacture, leaning on the semiconductor manufacturing industry’s decades of experience. The inertial confinement fusion startup is building a demonstration facility in collaboration with Colorado State University, which it expects to have operational by 2027. Munich-based Marvel has raised a total of $161 million from investors including b2venture, Deutsche Telekom, Earlybird, HV Capital, and Taavet Hinrikus and Albert Wenger as angels. First Light First Light dropped its pursuit of fusion power in March 2025, pivoting instead to become a technology supplier to fusion startups and other companies. The startup had previously followed an approach known as inertial confinement, in which fusion fuel pellets are compressed until they ignite. First Light, which is based in Oxfordshire, U.K., has raised $140 million, according to PitchBook, from investors including Invesco, IP Group, and Tencent. Xcimer Though nothing about fusion can be described as simple, Xcimer takes a relatively straightforward approach: follow the basic science that’s behind the National Ignition Facility’s breakthrough net-positive experiment, and redesign the technology that underpins it from the ground up. The Colorado-based startup is aiming for a 10-megajoule laser system, five times more powerful than NIF’s setup that made history. Molten salt walls surround the reaction chamber, absorbing heat and protecting the first solid wall from damage. Founded in January 2022, Xcimer has already raised $109 million, according to PitchBook, from investors including Hedosophia, Breakthrough Energy Ventures, Emerson Collective, Gigascale Capital, and Lowercarbon Capital. This story was originally published in September 2024 and will be continually updated. View Comments |
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19.06.25 13:00:02 | Nvidia’s Bringing Sovereign AI to Germany. Should You Buy NVDA Stock Here? | ![]() |
Image of Jensen Huang by jamesonwu1972 via Shutterstock Artificial intelligence (AI) darling Nvidia’s (NVDA) CEO Jensen Huang has been championing the idea of “sovereign AI” since 2023, a vision rooted in the belief that every nation should have ownership over its own AI, shaped by its unique language, culture, and values. And now, Europe is starting to take this message seriously. Just last week, the chip giant partnered with Deutsche Telekom (DTEGY) to introduce sovereign AI in Germany, unveiling plans to develop an AI-powered industrial cloud for European manufacturers. This so-called “AI factory,” which will be operated by Deutsche Telekom, is expected to be up and running by 2026. It’s designed to help European manufacturers integrate AI into a wide range of applications, from design and engineering to simulation, robotics, and digital twins. More News from Barchart ‘It Has No Utility’: Warren Buffett Doesn’t Care How High Gold Goes, He Isn’t a Buyer OpenAI CEO Sam Altman Says ‘We Are Heading Towards a World Where AI Will Just Have Unbelievable Context on Your Life’ Archer Aviation Is Betting Big on Its Fledgling Defense Business. Does That Make ACHR Stock a Buy Here? Our exclusive Barchart Brief newsletter is your FREE midday guide to what's moving stocks, sectors, and investor sentiment - delivered right when you need the info most. Subscribe today! In fact, this is just the beginning. Nvidia is also looking beyond Germany, with plans to expand its chip footprint into data centers across Spain, Italy, the United Kingdom, Finland, and Sweden. So, with sovereign AI finally gaining traction in Europe, is Nvidia’s growing role in this development worth investors' attention? About Nvidia Stock California-based Nvidia Corporation (NVDA) has rapidly risen to the forefront of the tech world, thanks to its game-changing advances in AI and GPU technology. From powering immersive gaming experiences to fueling data centers, autonomous vehicles, and high-performance computing, Nvidia’s chips are the engine behind countless modern breakthroughs, firmly establishing the company as a driving force in the digital revolution. With a staggering $3.5 trillion market cap, Nvidia has cemented its place among the world’s most valuable companies. But in 2025, the chip giant’s meteoric rise has started to lose a bit of steam. A mix of geopolitical headwinds, including escalating U.S.-China trade tensions and tariff battles, along with growing investor caution around the pace of AI spending and the emergence of new competitive chips, have all weighed on investors’ sentiment. After an eye-popping 794% return over the past three years, Nvidia is up just 7.3% so far this year, a far cry from its previous pace, yet still outpacing the broader S&P 500 Index’s ($SPX) modest 1.7% gain during the same stretch. Story Continues www.barchart.com High-growth giants like Nvidia rarely come cheap, and with its dominant position in the AI world, that premium is expected. The stock currently trades at 35.4 times forward earnings, well above sector norms. However, on a positive note, that valuation is actually more reasonable than it’s been in the past. Compared to its five-year average of 47.33x, Nvidia's current multiple suggests the stock, while still expensive, isn’t as overheated as it once was. Nvidia Delivers Strong Q1 Earnings All eyes were on Nvidia last month, when the chip king dropped its fiscal 2026 first-quarter earnings results on May 28, and once again, it blew past expectations. Revenue skyrocketed 69% year-over-year to $44.1 billion, blowing past the $43.3 billion estimate. Once again, Nvidia’s data center segment stole the spotlight, delivering aggressive growth as the company continues to power the engine behind the AI revolution. Nvidia’s data center business delivered a wonderful 73% annual surge to $39.1 billion, accounting for a dominant 88% of the company’s top-line figure. Meanwhile, its gaming segment, driven by demand for high-performance 3D chips, climbed 42% to $3.8 billion. Even its automotive and robotics division joined the growth party, accelerating 72% year over year to $567 million. During the quarter, Nvidia hit a regulatory speed bump when the U.S. government ruled that its previously approved H20 chip for China would face new restrictions. The impact was costly. Nvidia took a $4.5 billion charge for excess inventory tied to the chip and estimated it lost out on $2.5 billion in potential sales. As a result, the company’s adjusted gross margin landed at 61%, but without the China-related hit, it would have been a much stronger 71.3%. On the bottom line, Nvidia posted adjusted earnings of $0.81 per share, up 33% year over year and topping estimates by 8%. Without the drag from the H20 chip charge, that figure would’ve jumped to $0.96. Nevertheless, investors appeared satisfied with the company’s Q1 performance, with the stock soaring 3.3% on May 29. For the second quarter of fiscal 2026, Nvidia is projecting revenue of $45 billion, give or take 2%, a figure that already accounts for an estimated $8 billion hit from recent export control restrictions impacting its H20 chips. On the profitability front, GAAP and non-GAAP gross margins are expected to land at 71.8% and 72%, respectively, with a 50-basis-point wiggle room. Despite the headwinds, Nvidia is still aiming high, targeting gross margins in the mid-70% range by the end of the year. What Do Analysts Expect for Nvidia Stock? Overall, Wall Street’s confidence in Nvidia remains rock-solid, with the stock still carrying a resounding “Strong Buy” consensus rating, reflecting unwavering confidence in its long-term story. Of the 44 analysts offering recommendations, 37 are giving it a solid “Strong Buy,” three suggest a “Moderate Buy,” three advocate “Hold,” and the remaining one gives a “Strong Sell.” The average analyst price target of $174.02 indicates 23% potential upside from the current price levels. The Street-high price target of $220 suggests that NVDA could rally as much as 55% from here.www.barchart.com Key Takeaways As sovereign AI gains traction across Europe, Nvidia is positioning itself at the core of the region’s AI ambitions. Through strategic partnerships like the one with Deutsche Telekom in Germany and a broader push into European data centers, the company is ensuring that even as countries strive for AI independence, they continue to heavily rely on Nvidia’s technology. With China sales constrained by export restrictions, this European expansion opens up a timely new growth avenue. Plus, taking into account the company’s strong fundamentals and continued backing from Wall Street, Nvidia’s latest European expansion adds another powerful layer to its growth story. In a market where regional AI independence is becoming a priority, NVDA’s strategic move certainly deserves investors’ attention. On the date of publication, Anushka Mukherji did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com View Comments |
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19.06.25 06:46:40 | German firms to submit separate EU bids for AI data centre, newspaper reports | ![]() |
BERLIN (Reuters) -Deutsche Telekom, Ionos and the Schwarz Group's IT subsidiary will submit separate expressions of interest to the EU for an AI data processing centre after they could not agree on a common concept, Germany's Tagesspiegel newspaper reported on Thursday. The European Commission this year unveiled plans to provide $20 billion in funding to construct AI data centres to catch up with the U.S. and China. Under a government coalition agreement, German Chancellor Friedrich Merz's conservatives and the Social Democrats said they aimed to have at least one of the centres built in Germany. In May, Deutsche Telekom said it had teamed up with SAP, web hosting firm Ionos and unlisted retailer Schwarz to seek EU support to build a so-called "AI gigafactory," a facility designed specifically to support the massive computing needs of artificial intelligence. The Tagesspiegel report, however, said that SAP was no longer participating in the bid. SAP did not comment specifically on the process, saying only that it was "not seeking a role as an operator or investor in connection with AI gigafactories." "Instead, we are examining how we can contribute our strengths as a technology and software provider to potential future AI gigafactory projects in Germany and Europe," the spokesperson said. Ionos told Reuters that the bid being submitted to Brussels on Friday was only an initial expression of interest and that an official application would be submitted later this year together with "partners." Schwarz Group declined to comment on whether it was submitting a separate bid, saying only that "should a German consortium be formed, everyone will be called upon to (contribute) to the realisation of the fastest, most reliable and most convincing AI gigafactory." Deutsche Telekom was not available for comment when contacted by Reuters. (Writing by Miranda Murray, Editing by Friederike Heine, Matthias Williams, Alexandra Hudson) View Comments |
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21.04.25 15:40:07 | DTEGY or TU: Which Is the Better Value Stock Right Now? | ![]() |
Investors with an interest in Diversified Communication Services stocks have likely encountered both Deutsche Telekom AG (DTEGY) and Telus (TU). But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look. The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits. Right now, Deutsche Telekom AG is sporting a Zacks Rank of #1 (Strong Buy), while Telus has a Zacks Rank of #3 (Hold). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that DTEGY has an improving earnings outlook. But this is just one factor that value investors are interested in. Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its current share price levels. The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value. DTEGY currently has a forward P/E ratio of 15.64, while TU has a forward P/E of 20.93. We also note that DTEGY has a PEG ratio of 1.38. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. TU currently has a PEG ratio of 4.23. Another notable valuation metric for DTEGY is its P/B ratio of 1.69. The P/B ratio is used to compare a stock's market value with its book value, which is defined as total assets minus total liabilities. For comparison, TU has a P/B of 1.84. These metrics, and several others, help DTEGY earn a Value grade of B, while TU has been given a Value grade of C. DTEGY sticks out from TU in both our Zacks Rank and Style Scores models, so value investors will likely feel that DTEGY is the better option right now. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Deutsche Telekom AG (DTEGY) : Free Stock Analysis Report TELUS Corporation (TU) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research View Comments |
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21.04.25 13:40:11 | Are Utilities Stocks Lagging Deutsche Telekom (DTEGY) This Year? | ![]() |
For those looking to find strong Utilities stocks, it is prudent to search for companies in the group that are outperforming their peers. Has Deutsche Telekom AG (DTEGY) been one of those stocks this year? Let's take a closer look at the stock's year-to-date performance to find out. Deutsche Telekom AG is one of 106 companies in the Utilities group. The Utilities group currently sits at #1 within the Zacks Sector Rank. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group. The Zacks Rank emphasizes earnings estimates and estimate revisions to find stocks with improving earnings outlooks. This system has a long record of success, and these stocks tend to be on track to beat the market over the next one to three months. Deutsche Telekom AG is currently sporting a Zacks Rank of #1 (Strong Buy). Within the past quarter, the Zacks Consensus Estimate for DTEGY's full-year earnings has moved 6.9% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive. Based on the most recent data, DTEGY has returned 21% so far this year. Meanwhile, stocks in the Utilities group have gained about 2.6% on average. This means that Deutsche Telekom AG is performing better than its sector in terms of year-to-date returns. One other Utilities stock that has outperformed the sector so far this year is ENGIE - Sponsored ADR (ENGIY). The stock is up 35.2% year-to-date. The consensus estimate for ENGIE - Sponsored ADR's current year EPS has increased 5.2% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy). Looking more specifically, Deutsche Telekom AG belongs to the Diversified Communication Services industry, which includes 15 individual stocks and currently sits at #29 in the Zacks Industry Rank. This group has lost an average of 1.2% so far this year, so DTEGY is performing better in this area. ENGIE - Sponsored ADR, however, belongs to the Utility - Electric Power industry. Currently, this 60-stock industry is ranked #40. The industry has moved +4.7% so far this year. Investors with an interest in Utilities stocks should continue to track Deutsche Telekom AG and ENGIE - Sponsored ADR. These stocks will be looking to continue their solid performance. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Deutsche Telekom AG (DTEGY) : Free Stock Analysis Report Story Continues ENGIE - Sponsored ADR (ENGIY) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research View Comments |
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08.04.25 12:44:53 | Deutsche Telekom (ETR:DTE) Is Paying Out A Larger Dividend Than Last Year | ![]() |
Deutsche Telekom AG (ETR:DTE) has announced that it will be increasing its dividend from last year's comparable payment on the 14th of April to €0.90. This makes the dividend yield about the same as the industry average at 2.9%. We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free. Deutsche Telekom's Payment Could Potentially Have Solid Earnings Coverage We like to see a healthy dividend yield, but that is only helpful to us if the payment can continue. Before making this announcement, Deutsche Telekom was easily earning enough to cover the dividend. This means that most of its earnings are being retained to grow the business. The next year is set to see EPS grow by 4.1%. If the dividend continues along recent trends, we estimate the payout ratio will be 39%, which is in the range that makes us comfortable with the sustainability of the dividend.XTRA:DTE Historic Dividend April 8th 2025 View our latest analysis for Deutsche Telekom Deutsche Telekom Has A Solid Track Record The company has a sustained record of paying dividends with very little fluctuation. Since 2015, the dividend has gone from €0.50 total annually to €0.90. This works out to be a compound annual growth rate (CAGR) of approximately 6.1% a year over that time. The dividend has been growing very nicely for a number of years, and has given its shareholders some nice income in their portfolios. The Dividend Looks Likely To Grow Some investors will be chomping at the bit to buy some of the company's stock based on its dividend history. We are encouraged to see that Deutsche Telekom has grown earnings per share at 23% per year over the past five years. Earnings have been growing rapidly, and with a low payout ratio we think that the company could turn out to be a great dividend stock. Deutsche Telekom Looks Like A Great Dividend Stock Overall, a dividend increase is always good, and we think that Deutsche Telekom is a strong income stock thanks to its track record and growing earnings. Earnings are easily covering distributions, and the company is generating plenty of cash. All in all, this checks a lot of the boxes we look for when choosing an income stock. Companies possessing a stable dividend policy will likely enjoy greater investor interest than those suffering from a more inconsistent approach. However, there are other things to consider for investors when analysing stock performance. For example, we've picked out 1 warning sign for Deutsche Telekom that investors should know about before committing capital to this stock. Looking for more high-yielding dividend ideas? Try our collection of strong dividend payers. Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. View Comments |
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05.04.25 06:21:16 | Be Sure To Check Out Deutsche Telekom AG (ETR:DTE) Before It Goes Ex-Dividend | ![]() |
Deutsche Telekom AG (ETR:DTE) is about to trade ex-dividend in the next four days. The ex-dividend date is usually set to be two business days before the record date, which is the cut-off date on which you must be present on the company's books as a shareholder in order to receive the dividend. The ex-dividend date is important as the process of settlement involves at least two full business days. So if you miss that date, you would not show up on the company's books on the record date. Thus, you can purchase Deutsche Telekom's shares before the 10th of April in order to receive the dividend, which the company will pay on the 14th of April. The company's next dividend payment will be €0.90 per share. Last year, in total, the company distributed €0.90 to shareholders. Last year's total dividend payments show that Deutsche Telekom has a trailing yield of 2.8% on the current share price of €32.60. Dividends are a major contributor to investment returns for long term holders, but only if the dividend continues to be paid. That's why we should always check whether the dividend payments appear sustainable, and if the company is growing. This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality. Dividends are usually paid out of company profits, so if a company pays out more than it earned then its dividend is usually at greater risk of being cut. Fortunately Deutsche Telekom's payout ratio is modest, at just 40% of profit. Yet cash flow is typically more important than profit for assessing dividend sustainability, so we should always check if the company generated enough cash to afford its dividend. It distributed 27% of its free cash flow as dividends, a comfortable payout level for most companies. It's positive to see that Deutsche Telekom's dividend is covered by both profits and cash flow, since this is generally a sign that the dividend is sustainable, and a lower payout ratio usually suggests a greater margin of safety before the dividend gets cut. Check out our latest analysis for Deutsche Telekom Click here to see the company's payout ratio, plus analyst estimates of its future dividends.XTRA:DTE Historic Dividend April 5th 2025 Have Earnings And Dividends Been Growing? Businesses with strong growth prospects usually make the best dividend payers, because it's easier to grow dividends when earnings per share are improving. Investors love dividends, so if earnings fall and the dividend is reduced, expect a stock to be sold off heavily at the same time. It's encouraging to see Deutsche Telekom has grown its earnings rapidly, up 23% a year for the past five years. Deutsche Telekom is paying out less than half its earnings and cash flow, while simultaneously growing earnings per share at a rapid clip. Companies with growing earnings and low payout ratios are often the best long-term dividend stocks, as the company can both grow its earnings and increase the percentage of earnings that it pays out, essentially multiplying the dividend. Story Continues Another key way to measure a company's dividend prospects is by measuring its historical rate of dividend growth. In the past 10 years, Deutsche Telekom has increased its dividend at approximately 6.1% a year on average. We're glad to see dividends rising alongside earnings over a number of years, which may be a sign the company intends to share the growth with shareholders. Final Takeaway From a dividend perspective, should investors buy or avoid Deutsche Telekom? We love that Deutsche Telekom is growing earnings per share while simultaneously paying out a low percentage of both its earnings and cash flow. These characteristics suggest the company is reinvesting in growing its business, while the conservative payout ratio also implies a reduced risk of the dividend being cut in the future. Overall we think this is an attractive combination and worthy of further research. On that note, you'll want to research what risks Deutsche Telekom is facing. Our analysis shows 1 warning sign for Deutsche Telekom and you should be aware of it before buying any shares. Generally, we wouldn't recommend just buying the first dividend stock you see. Here's a curated list of interesting stocks that are strong dividend payers. Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. View Comments |
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04.04.25 15:40:08 | DTEGY vs. TU: Which Stock Is the Better Value Option? | ![]() |
Investors looking for stocks in the Diversified Communication Services sector might want to consider either Deutsche Telekom AG (DTEGY) or Telus (TU). But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look. We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores work to identify stocks with specific traits. Currently, Deutsche Telekom AG has a Zacks Rank of #1 (Strong Buy), while Telus has a Zacks Rank of #3 (Hold). This system places an emphasis on companies that have seen positive earnings estimate revisions, so investors should feel comfortable knowing that DTEGY is likely seeing its earnings outlook improve to a greater extent. However, value investors will care about much more than just this. Value investors also try to analyze a wide range of traditional figures and metrics to help determine whether a company is undervalued at its current share price levels. Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years. DTEGY currently has a forward P/E ratio of 16.24, while TU has a forward P/E of 18.95. We also note that DTEGY has a PEG ratio of 1.44. This figure is similar to the commonly-used P/E ratio, with the PEG ratio also factoring in a company's expected earnings growth rate. TU currently has a PEG ratio of 3.72. Another notable valuation metric for DTEGY is its P/B ratio of 1.75. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, TU has a P/B of 1.78. Based on these metrics and many more, DTEGY holds a Value grade of B, while TU has a Value grade of C. DTEGY sticks out from TU in both our Zacks Rank and Style Scores models, so value investors will likely feel that DTEGY is the better option right now. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Deutsche Telekom AG (DTEGY) : Free Stock Analysis Report TELUS Corporation (TU) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research View Comments |
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04.04.25 13:40:15 | Is Deutsche Telekom (DTEGY) Stock Outpacing Its Utilities Peers This Year? | ![]() |
The Utilities group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Has Deutsche Telekom AG (DTEGY) been one of those stocks this year? By taking a look at the stock's year-to-date performance in comparison to its Utilities peers, we might be able to answer that question. Deutsche Telekom AG is a member of the Utilities sector. This group includes 106 individual stocks and currently holds a Zacks Sector Rank of #3. The Zacks Sector Rank considers 16 different sector groups. The average Zacks Rank of the individual stocks within the groups is measured, and the sectors are listed from best to worst. The Zacks Rank is a proven model that highlights a variety of stocks with the right characteristics to outperform the market over the next one to three months. The system emphasizes earnings estimate revisions and favors companies with improving earnings outlooks. Deutsche Telekom AG is currently sporting a Zacks Rank of #1 (Strong Buy). The Zacks Consensus Estimate for DTEGY's full-year earnings has moved 7.9% higher within the past quarter. This is a sign of improving analyst sentiment and a positive earnings outlook trend. Based on the latest available data, DTEGY has gained about 25.7% so far this year. Meanwhile, stocks in the Utilities group have gained about 6.4% on average. As we can see, Deutsche Telekom AG is performing better than its sector in the calendar year. One other Utilities stock that has outperformed the sector so far this year is Telefonica (TEF). The stock is up 22.1% year-to-date. For Telefonica, the consensus EPS estimate for the current year has increased 1.5% over the past three months. The stock currently has a Zacks Rank #1 (Strong Buy). Looking more specifically, Deutsche Telekom AG belongs to the Diversified Communication Services industry, which includes 15 individual stocks and currently sits at #38 in the Zacks Industry Rank. On average, stocks in this group have gained 6.1% this year, meaning that DTEGY is performing better in terms of year-to-date returns. Telefonica is also part of the same industry. Going forward, investors interested in Utilities stocks should continue to pay close attention to Deutsche Telekom AG and Telefonica as they could maintain their solid performance. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Deutsche Telekom AG (DTEGY) : Free Stock Analysis Report Telefonica SA (TEF) : Free Stock Analysis Report Story Continues This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research View Comments |