Should I buy deutsche telekom ag shares

Deutsche Telekom AG (DTEGY) appears to be a solid investment option, and here's why:

1. Attractive Dividend: Deutsche Telekom offers an attractive dividend, with a proposed dividend for the fiscal year 2023 being €0.77, an increase of +10% versus the dividend for FY2022 of €0.70. The dividend payout ratio is between 40 and 60% of the adjusted earnings per share, ensuring its sustainability.
2. Strong Market Position: The company's competitiveness and strong market positions are good reasons to invest in Deutsche Telekom shares. Its revenue has grown by an annual average rate of +1 to +2% from 2020 to 2024, and its adjusted EBITDA has grown by +3 to +5% annually over the same period.
3. Financial Health: Deutsche Telekom's financial health is robust, with free cash flow expected to grow to more than €18 billion in 2024. The company has also announced a share buyback program worth €2 billion, which could signal confidence in its financial stability.
4. Strategic Investments: The company has been investing in core business and has achieved the highest partner status in Broadcom's VMware Cloud Service Provider program, which could enhance its cloud services and expand its market reach.
5. Artificial Intelligence (AI) Integration: Deutsche Telekom is leveraging AI to boost its revenue growth and trim costs, aiming to accelerate growth in revenue and earnings through 2027. This strategic move could position the company well for future technological advancements.
6. Analyst Ratings: Despite some downgrades, the overall analyst sentiment is positive, with Citigroup and Berenberg Bank upgrading the stock to a "strong-buy" rating. This suggests that analysts are optimistic about the company's future performance.
7. Market Conditions: The company's stock has found support at €29.43, with a potential buying opportunity as an upwards reaction can be expected. Additionally, the stock has a golden star bullish signal, indicating short-term upward momentum.

However, it's important to consider your individual risk tolerance and investment goals. While Deutsche Telekom AG presents a strong investment case, it's crucial to align this decision with your personal financial strategy.

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