Reasons to invest

An attractive dividend, the Group's competitiveness and strong market positions are some reasons to invest in Deutsche Telekom shares.

Tax free dividend payment for Deutsche Telekom shareholders

As the dividend is to be paid in full from the tax contribution account in accordance with § 27 of the Corporation Tax Act (Körperschaftsteuergesetz– KStG), payment will be made without deducting capital gains tax or the solidarity surcharge. Dividends paid to shareholders in Germany are not subject to taxation. Dividends do not entail tax refunds or tax credits. In the German tax authorities’ view the dividend payment reduces the acquisition costs of the shares for tax purposes. Out of today’s perspective the dividend payment from the tax contribution account in accordance with § 27 will continue over the next years.

High reliability: The dividend for the fiscal year 2019 will be 60 Cent per share, irrespective if the merger between T-Mobile USA and Sprint happens or not. For the years 2020 and 2021 we have increased the minimum dividend in November 2019 from 50 Cent to 60 Cent.
Dividend growth: The growth of our dividend will based in the coming years on the development of the adjusted earnings per share. The merger of T-Mobile USA and Sprint will decrease the adjusted earnings per share will decrease initially before they increase significantly after the integration. The minimum dividend will be in any case 60 Cent.
Tax-free payout: The dividend for the 2019 financial year will be paid out without deduction of the German capital gains tax.

*subject to required approvals

Revenue: Growing – by an annual average rate of +1 to +2% from 2017 to 2021.
Cost base: Falling – not only in terms of the ratio of costs to revenue, but also in absolute terms (amount of costs in €). The exception is the United States, where business is growing strongly.
Adjusted EBITDA: Growing – by an annual average rate of +2 to +4% from 2017 to 2021.
Free cash flow: Growing – by an annual average rate of +10% from 2017 to 2021.
Adjusted earnings per share: Growing – from € 0.96 in 2018 to around € 1.2 in 2021.
Continuous investment in core business: Stable investment except for T-Mobile US.
You can find all further information on the outlook here.

Germany: Excellent positioning in the domestic market as an integrated provider of fixed-network and mobile services. Winner of all major quality awards. With Magenta1, Deutsche Telekom offers attractive packages combining mobile and fixed-network services.
United States: After the successful merger of T-Mobile USA with the US wireless operator Sprint, the success story is set to continue on an even elevated level. The rapid rollout of a nationwide 5G network will provide an excellent competitive advantage. The synergies fo $6 billion per year will increase the profitability significantly.
Key European markets: Strong market positions in combination with a clear strategy.
A management team that proactively addresses challenges and develops a value-oriented investment portfolio.

Attractive returns for equity providers.
Balance sheet ratios within the target range for debt lenders.Fully funded for more than 24 months. Maturity profile with no concentration of credit risk.
You can find all further information on the finance strategy here.

Our investor relations efforts have been top-rated for the past few years in Europe: in 2019, IR work was awarded first place in the current Institutional Investor Survey in the telecommunications sector in Europe. In the Extel Survey, Deutsche Telekom has also been awarded first place across all sectors in Europe in recent years. Further information can be found here.