TEF - With 8% Dividend Yield Telefonica Has Upside Potential
2024-01-28 21:14:58 ET
Summary
- Telefonica's various telecoms businesses present a mixed bag overall, with solid positions in Spain and the U.K. offset by weaker operations in Latin America and Germany.
- Medium-term financial goals point to modest growth and look achievable, while the 8%-yielding dividend is more secure than it appears at first glance.
- These shares look around 25% undervalued based on a rough sum-of-the-parts method, with the market basically ignoring the value of its U.K. joint venture.
Shares of Spanish telecoms giant Telefonica ( TEF ) have had a pretty solid 12 months, returning around 17% (with dividends) in that time amid stabilizing earnings in Spain and fresh medium-term financial targets that look to have been well-received by the market....
With 8% Dividend Yield, Telefonica Has Upside Potential