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Tuesday, 01/08/2002

NOK - Nokia

Company Description

Nokia is the world leader in mobile communications. Backed by its experience, innovation, user-friendliness and secure solutions, the company has become the leading supplier of mobile phones and a leading supplier of mobile, fixed and IP networks. By adding mobility to the Internet Nokia creates new opportunities for companies and further enriches the daily lives of people. Nokia is a broadly held company with listings on six major exchanges.

Nokia's handsets, set-top boxes and terminals are internationally recognized for their 'look and feel' and practicality. Behind the scenes, Nokia's base station equipment is designed to help operators create robust and reliable infrastructures for their customers.

(Source: Nokia)

Reasons To Invest

The telecom business remains an incredibly difficult place for the bulls. Most companies tied to the telecom business continue to struggle. Recent warnings from networking equipment makers, integrated chip suppliers to the handset manufactures, handset manufacturers, and wireless services companies have all recently chimed in with sour news. Ciena (NASDAQ:CIEN), who is a maker of high-end optical networking equipment, recently said business remained tough. And Western Wireless (NASDAQ:WWCA), a wireless services company, blew up. There's no doubt that it's difficult in telecom land.

But the difficulties for the weaker players in the segment may create long-term buying opportunities in the strongest players. Nokia is the strongest in the wireless handset market. The company is crushing its competitors and making inroads into new areas.

For instance, the company recently penned an agreement with Beijing Hua Xun Group to supply its TETRA digital mobile radio network in China. Nokia will supply digital switches, base stations, dispatcher systems, network management systems, terminals, and customer service to a huge market. China has grown into Nokia's second largest market in the world, and the recent agreement reveals the progress being made.

While others continue to struggle, such as Motorola (NYSE:MOT), Nokia is growing and expanding and taking share away from its weaker sisters in the group. The company is well-positioned for the next rebound, which could be around the corner. In the meantime, you can actually collect a dividend, albeit a small one, from this tech stock, which can't be said for many other tech or telecom companies. The fact that Nokia actually pays a dividend speaks volumes for its financial stability.

DRIP Information:
Shares to Qualify = 1           Accept Foreign Accounts: Yes
Auto-reinvestment = Yes         Temper Enrollment Serv:  Yes

Min/Max Investment = $50 to $100,000/year
Reinvestment Fees: 
Dividend: 4 cents/share   Cash: $2.50 + 4 cents/share
Auto ReInvest: $2.50 + 4 cents/share

Transfer Agent:



Industry Group: Wireless Telecom  52-week high=$43.38
Annual Dividend Per Share=  0.25  52-week low =$12.70
Last earnings 10/18   est = 0.13  actual = 0.14
Next earnings 01-18   est = 0.14  versus = 0.21
                                    P/E  = 32.81
Analyst Ratings:
Strong Buy    =  6
Moderate Buy  = 11
Hold          =  6
Moderate Sell =  0
Strong Sell   =  0


Copyright 2003

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