4D·

Telekom and RWE

What are your assessments of the $DTE (+0.02%) and $RWE (-1.3%) diversification and stabilization of the portfolio at the present time?

2 Comments

Luis@Lui_hb

Deutsche Telekom currently somewhat expensive, currently cheap in my opinion $DHL solid German company.

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Eselai@DonkeyInvestor

Here is a fact-based assessment of Deutsche Telekom (DTE, ISIN: DE0005557508) and RWE (ISIN: DE0007037129) with regard to diversification and stabilization of a portfolio - as of 21.08.2025:

Data basis and methodology:
- Current fundamental data, dividend history, sector affiliation and share price performance over the last 12 months (absolute and relative values) were analyzed.
- All figures in EUR, as of today.

1. sectoral diversification:
- Deutsche Telekom: Telecommunications (defensive, less cyclical sector)
- RWE: Utilities/energy (also defensive, but with exposure to renewable energies and electricity prices)
- Both companies are in the DAX, but in different sectors. They therefore offer a certain degree of diversification compared to cyclical sectors such as industry or consumption.

2. stabilization potential:
- Telecommunications and utilities are considered relatively stable sectors as their services are in demand even in economically weaker phases.
- Both companies pay regular dividends (DTE: most recently €0.90/share, RWE: €1.10/share), which contributes to current income.
- The dividend yield (TTM) is approx. 2.85% for DTE and approx. 3.11% for RWE. Both also show moderate to strong dividend growth over 1-5 years.

3. share price performance (last 12 months):
- Deutsche Telekom: +25.8 % share price increase
- RWE: +11.7 % share price increase
- Both stocks developed positively, with DTE gaining significantly more.

4 Fundamental key figures (selection):
- DTE: P/E ratio approx. 12.3, market capitalization approx. € 152 bn, very solid cash flows, high analyst consensus (81 % Buy/Strong Buy)
- RWE: P/E ratio approx. 10.1, market capitalization approx. € 25.7 bn, negative free cash flow year (2024), but high analyst approval (90 % Buy/Strong Buy)

Conclusion on diversification and stabilization:
- Both stocks can contribute to risk diversification as they cover different, defensive sectors.
- They offer regular dividends and have recently performed stably.
- For truly broad diversification, however, they should only be building blocks in a global, cross-sector portfolio.

Limitation:
- The assessment is based on current data and historical developments. Future market events, political interventions or special situations can influence stability.
- Not an individual investment recommendation, but a fact-based classification in accordance with evidence-based investment principles.

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