British Telecom – BT Share Price Forecast 2024, 2025, 2026, 2027, 2030 and Dividend Prediction

British Telecom (BT) is one of the largest telecommunications companies in the world, providing a range of services such as broadband, mobile, TV, and cloud to customers in over 180 countries. The company is listed on the London Stock Exchange (LSE) under the ticker symbol BT.A. In this article, we will look at the BT Share Price Forecast 2024, 2025, 2026, 2027, 2030 and Dividend Prediction.

In this blog post, we will examine the current performance, competitive landscape, growth opportunities, financials, risks, and key factors of British Telecom Stock.

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BT Share Price Forecast 2024, 2025, 2026, 2027, 2030

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BT Share Price Live Chart

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BT Dividend Forecast

BT Group has experienced various changes in its dividend policy over the past years, with an evolving dividend per share and payout ratio:

BT Dividend History (2014-2023)

• From 2014 to 2017, BT’s dividend per share increased from 10.9p to 15.4p, with a compound annual growth rate (CAGR) of 11.4%. However, the payout ratio also rose, indicating that earnings growth was not keeping pace with dividend growth.
• Dividend per share remained at 15.4p for 2018 and 2019, but the payout ratio surged to 118.5% in 2019, as the company paid out more in dividends than its earnings.
• In 2020, BT cut its dividend per share by 50% to 7.7p, the first cut since the 2009 financial crisis, to conserve cash for network upgrades and 5G rollout.
• The company maintained a dividend of 7.7p per share in 2021 and announced a policy to grow dividends by 3-7% annually from 2022 onwards.

BT Dividend Forecast (2024-2030)

• The forecast for 2024 suggests a dividend per share of 7.86p, with a dividend yield of 5.5% and a payout ratio of 60.8%.
• A gradual increase in dividend per share is anticipated, reaching 9.45p by 2030. However, the payout ratio remains high, over 60% throughout the forecast period, exceeding BT’s target range of 40-60%.
• This high payout ratio raises concerns about the sustainability of the dividend, as it suggests the company might not earn enough to cover dividend payments without dipping into cash reserves or borrowing.

Analysis and Conclusion

• BT’s modest annual dividend growth aligns with its policy but is coupled with a high payout ratio, indicating potential challenges in sustaining dividend payments.
• The market’s skepticism is reflected in the high dividend yield, suggesting a perceived risk of future dividend cuts or suspensions.
• Investors seeking stable, secure dividend income might consider the BT dividend forecast as less reliable, potentially exploring other options for dividend investments.

In conclusion, while BT aims for modest dividend growth, the high payout ratio and market skepticism highlight risks and uncertainties in its dividend sustainability. Investors should approach BT’s dividend potential with caution.

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BT Share Price Forecast 2024

BT Share Price Forecast 2024: The BT share price forecast for 2024 predicts a minimum target of £1.63, a maximum of £2.00, and an average of £1.81.

Current Competitors for British Telecom (BT)

The telecommunications industry is highly competitive and dynamic, with constant changes in technology, customer preferences, and regulations. BT faces competition from both domestic and international players, such as:

• Orange: A French multinational telecom company that operates in 26 countries across Europe, Africa, and the Middle East. Orange offers mobile, fixed, internet, TV, and cloud services to over 266 million customers. Orange is also a major shareholder of BT, owning 4% of its total voting rights as of March 2017.
• Telefonica: A Spanish multinational telecom company that operates in 14 countries across Europe and Latin America. Telefonica offers mobile, fixed, internet, TV, and digital services to over 344 million customers. Telefonica also owns O2, one of the leading mobile operators in the UK.
• Vodafone: A British multinational telecom company that operates in 25 countries across Europe, Africa, Asia, and Oceania. Vodafone offers mobile, fixed, internet, TV, and cloud services to over 536 million customers. Vodafone also owns a 50% stake in Virgin Media O2, a joint venture with Liberty Global that provides broadband, TV, and mobile services in the UK.
• Deutsche Telekom: A German multinational telecom company that operates in over 50 countries across Europe, North America, Africa, and Asia. Deutsche Telekom offers mobile, fixed, internet, TV, and cloud services to over 242 million customers. Deutsche Telekom also owns T-Mobile US, one of the largest mobile operators in the US.

According to a report by Craft.co, BT’s market share in the UK telecom market was 23% as of June 2020, followed by Vodafone with 21%, Virgin Media O2 with 15%, Sky with 10%, and TalkTalk with 9%. BT’s global revenue was £22.9 billion in FY2020, compared to £43.8 billion for Orange, £44.9 billion for Telefonica, £44.6 billion for Vodafone, and £80.5 billion for Deutsche Telekom.

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BT Share Price Forecast 2025

BT Share Price Forecast 2025: The BT share price forecast for 2025 anticipates a minimum target of £1.63, a maximum of £2.00, and an average of £1.81.

Growth Opportunities for British Telecom (BT)

BT has identified several growth opportunities for its business in the UK and abroad. Some of these include:

• Investing in the best-converged network: BT is committed to being the market leader in new full fibre and 5G networks in the UK, with the broadest reach and enhanced capabilities. These networks will provide faster and more reliable connections for its customers, enabling them to do more online. BT aims to reach 20 million premises with full fibre by the mid-to-late 2020s and to cover over 90% of the UK population with 5G by 2028.
• Exploring new tech-driven growth engines: BT is seeking out opportunities where its assets, capabilities, and expertise position it to drive profitable growth and create great outcomes for its customers and country. Some of these areas include cloud computing, cyber security, digital health care, smart cities, the internet of things (IoT), and artificial intelligence (AI).
• Expanding its global presence: BT is focusing on growing its international business by providing high-quality connectivity and digital solutions to multinational corporations (MNCs), governments, and wholesale customers. BT has a strong presence in key markets such as Europe, North America, Asia-Pacific, Latin America, and Africa.

BT Share Price Forecast 2026

BT Share Price Forecast 2026: The BT share price forecast for 2026 is projected to have a minimum target of £1.63, a maximum of £2.00, and an average of £1.81.

British Telecom (BT) Company Financials

BT’s financial performance has been affected by various factors such as the COVID-19 pandemic, regulatory pressures, market competition, legacy issues, and restructuring costs. Here are some key financial highlights from its latest annual report:

• Revenue: £22.9 billion in FY2020 (ending March 31), down by 2% year-on-year (y-o-y) from £23.4 billion in FY2019.
• EBITDA: £7.4 billion in FY2020 (excluding specific items), down by 3% y-o-y from £7.6 billion in FY2019.
• Profit before tax: £1.8 billion in FY2020 (excluding specific items), down by 13% y-o-y from £2 billion in FY2019.
• Earnings per share: 17 pence in FY2020 (excluding specific items), down by 12% y-o-y from 19.3 pence in FY2019.
• Dividend per share: 4.62 pence in FY2020, down by 58% y-o-y from 11.02 pence in FY2019.
• Net debt: £18 billion as of March 31, 2020, up by 24% y-o-y from £14.5 billion as of March 31, 2019.

Risks in the Future for British Telecom (BT) Share

BT faces several risks and uncertainties that could affect its future performance and prospects. Some of these include:

• Regulatory and legal risks: BT operates in a highly regulated environment, both in the UK and abroad. Changes in regulations, policies, laws, or enforcement actions could have a material impact on its operations, costs, revenues, or competitive position. For example, BT is subject to the UK’s telecom regulator Ofcom’s decisions on pricing, quality, access, and competition in the telecom market. BT is also subject to various legal disputes and investigations that could result in fines, penalties, or damages.
• Competitive and market risks: BT operates in a highly competitive and dynamic industry, where customer preferences, technology trends, and market conditions change rapidly. BT faces competition from both traditional and new entrants in the telecom sector, as well as from other sectors such as media, technology, and e-commerce. BT also faces risks from macroeconomic factors such as inflation, exchange rates, interest rates, consumer spending, and business confidence that could affect its demand and profitability.
• Operational and technological risks: BT relies on its network infrastructure, systems, processes, and people to deliver its services to its customers. Any disruption, failure, damage, or breach of these assets could affect its service quality, customer satisfaction, reputation, or security. BT also faces risks from cyber attacks, data breaches, fraud, or theft that could compromise its data or systems. BT also needs to invest in innovation and technology to keep pace with the changing customer needs and market opportunities.

BT Share Price Forecast 2030

BT Share Price Forecast 2030: The BT share price forecast for 2030 projects a minimum target of £1.63, a maximum of £2.00, and an average target of £1.81.

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Key Things to Watch Out for British Telecom Share

British Telecom Stock is currently trading at around £1.17 per share on the LSE as of September 15, 2023. The stock has a market capitalization of around £11.3 billion on the LSE and around $15.4 billion on the NYSE. The stock has a price-to-earnings (P/E) ratio of around 6.7 and a dividend yield of around 6.8%.

Some of the key things to watch out for British Telecom Share are:

• The progress and impact of its network investments in full fiber and 5G
• The performance and potential of its new growth areas such as cloud computing, cyber security, digital health care, smart cities, IoT, and AI
• The outcome and implications of its regulatory and legal issues with Ofcom and other authorities
• The competitive landscape and market dynamics in the UK and global telecom markets
• The financial results and guidance for FY2021 and beyond

Final Thoughts on BT Share Price Forecast 2023, 2024, 2025, 2027, 2030

To conclude, British Telecom Stock is a well-established telecom company that operates in a highly competitive and regulated industry. The company has been facing some challenges in terms of revenue, profitability, and debt, but it also has some promising opportunities in terms of network investments, new growth areas, and global expansion.

We looked at the BT Stock Price Share 2023, 2024, 2025, 2027, 2030 after doing a thorough analysis of the BT Stock. The BT stock is currently trading at a low P/E ratio and a high dividend yield, which could indicate a potential value or a sign of distress.

Investors who are interested in British Telecom Stock should keep an eye on its financial performance, regulatory and legal issues, competitive landscape, and market dynamics.

The opinions expressed in this blog post are for informational purposes only and do not constitute investment advice. Investors should do their own research and consult their financial advisors before making any investment decisions.

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FAQs on BT Share Price Forecast 2024, 2025, 2026, 2027, 2030

What is BT Share Price Forecast 2023?

For the year 2023, the minimum price target for BT’s stock is projected to be one pound thirty pence (£1.30). On the higher end, the maximum price target is anticipated to reach one pound sixty pence (£1.60). Taking both extremes into account, the average price target for the year stands at one pound forty-five pence (£1.45).

What is BT Share Price Forecast 2024?

For the year 2024, the minimum price target for BT’s stock is projected to be one pound sixty-three pence (£1.63). On the higher end, the maximum price target is anticipated to reach two pounds (£2.00). Taking both extremes into account, the average price target for the year stands at one pound eighty-one pence (£1.81).

What is BT Share Price Forecast 2025?

For the year 2025, the minimum price target for BT’s stock is projected to be two pounds three pence (£2.03). On the higher end, the maximum price target is anticipated to reach two pounds fifty pence (£2.50). Taking both extremes into account, the average price target for the year stands at two pounds twenty-seven pence (£2.27).

What is BT Share Price Forecast 2026?

For the year 2030, the minimum price target for BT’s stock is projected to be six pounds twenty pence (£6.20). On the higher end, the maximum price target is anticipated to reach seven pounds sixty-three pence (£7.63). Taking both extremes into account, the average price target for the year stands at six pounds ninety-one pence (£6.91).