Deutsche Telekom dividend
MyStockButler's October 2026 analysis: Deutsche Telekom pays €1.00 per share, and its dividend yield is 3.9% at a share price of €25.35. The dividend is supported by 2026 free-cash-flow guidance of €20 billion after leases, while the €1.00 dividend paid in April 2026 was half of adjusted EPS.
How much does Deutsche Telekom pay per share?
The stated free-cash-flow yield is 18.6%, or 17.8% under the “real” definition. That looks attractive, but the cash is not automatically available to Deutsche Telekom shareholders: spectrum spending is excluded, and T-Mobile US has outside owners. The dividend yield is 3.9%. The €1.00 dividend paid in April 2026 was half of adjusted EPS, which indicates coverage but not complete distributability.
| 2025 | 2024 | 2023 | 2022 | 2021 | |
|---|---|---|---|---|---|
| EPS, diluted, from continuing operations | 1.97 | 2.27 | 0.82 | 1.52 | 0.82 |
| Real free cash flow per share | 4.44 | 4.36 | 3.67 | 2.71 | 2.38 |
| − Dividends paid, per share | 0.90 | 0.77 | 0.70 | 0.64 | 0.59 |
| − Share buybacks, per share | 0.41 | 0.40 | 0.00 | 0.00 | 0.00 |
What this means. The company's own free cash flow per share differs from our real free cash flow per share because it uses different rules for lease payments and customer-base purchases, while our figure also subtracts shares given to employees.
How much would Deutsche Telekom's dividend pay you?
€10,000 invested in Deutsche Telekom at its 3.9% dividend yield (our report of October 24, 2026) pays €390.00 in the first year, before tax. If its dividend per share keeps changing 11.1% a year, as it did from 2021 to 2025, and the dividends are reinvested, year 10 pays €1,727.12, with €8,852.11 received in all.
Before tax. Past dividend growth is not a promise. Information only, not investment advice.
Is Deutsche Telekom's dividend covered by its cash?
Free cash flow deducts the spending needed to keep the business operating. Telekom’s own FCF AL deducts cash investment and lease payments, while using its own treatment of intangible assets, disposals and customer-base acquisitions. The memo’s “real free cash flow” goes further by treating stock-based pay as an owner cost because issuing shares can dilute existing owners, even though it does not immediately consume cash.
| 2025 | 2024 | 2023 | 2022 | 2021 | |
|---|---|---|---|---|---|
| Free cash flow | 22,680 | 22,467 | 19,088 | 14,305 | 12,097 |
| − Dividends paid | 4,398 | 3,817 | 3,483 | 3,182 | 2,846 |
| − Share buybacks | 2,000 | 1,974 | 0 | 0 | 0 |
| = Free cash flow not paid out | 14,242 | 14,901 | 15,061 | 10,920 | 8,952 |
| Paid to shareholders | 6,398 | 5,791 | 3,483 | 3,182 | 2,846 |
| Paid out, % of free cash flow | 28.2% | 25.8% | 18.2% | 22.2% | 23.5% |
What this means. The company's own net debt is higher because it counts some obligations, such as leases and other liabilities, that our calculation leaves out.
What could change Deutsche Telekom's dividend?
The base dividend is €1.10 per share in 2027. It rises to €1.20 and €1.30 as adjusted EPS grows and management applies the midpoint of its 40%–60% payout range. The bear case holds the dividend at €0.90 because investment and debt capacity take priority. The bull case reaches €1.20, €1.40 and €1.60 as stronger earnings support a payout near the upper half of policy.
During 2027–2029, slowing U.S. postpaid additions, rising churn or persistent broadband losses would reduce EBITDA and the multiple. Faster fiber take-up would do the opposite. Buyback spending, debt refinancing, spectrum costs and cash after investment will determine whether capital returns remain near the base path or move toward the bear or bull cases.
What is Deutsche Telekom's dividend yield today?
Cash generation improved over five years, and real free cash flow per share rose, but diluted EPS stayed volatile and net debt remained substantial. Real free cash flow is computed from cash from operations minus capital spending, lease payments and stock pay. The company’s 2026 free-cash-flow guidance is €20 billion after leases; at €25.35 a share, valuation is 9.8x next-twelve-month P/E and the dividend yield is 3.9%.
| Today (Oct 24, 2026) | |
|---|---|
| Share price | 25.35 |
| P/E, next 12 months (calculated) | 9.8x |
| Dividend yield (calculated) | 3.9% |
What this means. Enterprise value is much higher than market value because it includes the company's debt after subtracting its cash.