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Decentralized Network Freenet Offers High Returns and Future Promise?

Strong performance from German mobile network operator Freenet in Q1, hinting at potentially impressive results for the rest of the year. Could this examination of the high-yield stock prove advantageous to investors? By Johann Werther

Decentralized network Freenet offers high returns and promising future prospects?
Decentralized network Freenet offers high returns and promising future prospects?

Decentralized Network Freenet Offers High Returns and Future Promise?

Freenet AG, a prominent German telecom operator, is currently offering attractive dividend yields, making it a popular choice among investors. According to market data from July 31, 2025, the dividend yield for 2025 stands at approximately 7.35%, rising to 7.57% for 2026 [1][2]. This high yield places Freenet among the leaders in the German telecom sector.

Historically, Freenet has demonstrated a strong dividend growth record, with a few exceptions. Prior to the Covid-19 pandemic in 2020, the dividend was generally on an upward trend. However, during the pandemic, dividends were cut, after which they improved again [2]. This suggests that yields were likely lower and more stable before 2020, dropped during the pandemic, and have since recovered to their current high levels.

The company has consistently paid a dividend since 2010, and its stock is particularly popular. Notably, Mr. Bernd Förtsch, the majority shareholder of the sole shareholder of Finanzen Verlag GmbH, holds direct and indirect positions in Freenet's financial instruments.

In addition to its dividend appeal, Freenet's financial performance is also impressive. Operating profit increased by eight percent to nearly 123 million euros, and net profit increased by more than six percent to 35 million euros. The company's quarterly results also exceeded expectations.

Looking ahead, analysts are bullish on Freenet's stock, with Goldman Sachs maintaining a "buy" recommendation for Freenet AG, along with a price target of 30 euros. The EBITDA for 2022 is expected to be 10 million euros higher, ranging between 460 and 480 million euros.

Moreover, the improved free cash flow of Freenet AG is expected to contribute to a long-term improvement in the company's prospects, according to Goldman Sachs' analysis. The average price target for Freenet AG this year is 27.21 euros, corresponding to a potential increase of 18 percent plus dividend from the current level.

In conclusion, Freenet AG offers a high dividend yield, strong financial performance, and a bullish outlook, making it an appealing investment opportunity for many. However, for precise historical yield data since 2010, direct access to Freenet AG annual reports or financial databases covering dividends since 2010 would be required, as it is not detailed in the provided sources.

Sources: [1] Market data from July 31, 2025. [2] Information obtained from various financial sources.

  1. Given the historical demonstration of strong dividend growth by Freenet AG, with the exception of a drop during the Covid-19 pandemic in 2020, investors might find personal-finance opportunities in the stable yields of Freenet's investing in its financial instruments.
  2. The improved free cash flow of Freenet AG, coupled with a bullish outlook from analysts, suggests a potential for personal-finance growth, emphasizing the attractiveness of investing in Freenet's stocks for the long term.

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