T-Mobile Poised for Continued Growth and Outperformance Backed by 5G, Low Leverage and New Dividend

T-Mobile US (TMUS) has consistently outperformed competitors and the market over the past decade, with 427% total return over 10 years.

TMUS has lower leverage than competitors, allowing it to grow faster. Its operating margin grew from 4.8% in 2013 to 16.7% in 2022.

TMUS recently announced its first ever dividend, to be paid in Q4 2023, making it more appealing to income investors.

TMUS is well positioned for 5G, owning more spectrum than rivals after Sprint merger. It aims for 7-8 million 5G broadband subscribers by 2025.

I anticipate 19% EPS growth annually over next 4 years, potentially bringing stock price to $206 by end of 2027. This suggests 12% annualized return.