Vodafone Dividends - VOD

Vodafone Dividends - VOD

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Stock Name Stock Symbol Market Stock Type Stock ISIN Stock Description
Vodafone Group Plc VOD London Ordinary Share GB00BH4HKS39 ORD USD0.20 20/21
  Price Change Price Change % Stock Price Low Price High Price Open Price Close Price Last Trade
0.00 0.0% 127.84 0.00 0.00 0.00 127.84 01:00:00
more quote information »
Industry Sector
MOBILE TELECOMMUNICATIONS

Vodafone VOD Dividends History

Announcement Date Type Currency Dividend Amount Period Start Period End Ex Date Record Date Payment Date Total Dividend Amount
12/05/2020FinalEUX4.531/03/201931/03/202011/06/202012/06/202007/08/20209
12/11/2019InterimEUX4.530/03/201930/09/201928/11/201929/11/201907/02/20200
14/05/2019FinalEUX4.1631/03/201831/03/201906/06/201907/06/201902/08/20199
13/11/2018InterimEUX4.8430/03/201830/09/201822/11/201823/11/201801/02/20190
15/05/2018FinalEUX10.2331/03/201731/03/201807/06/201808/06/201803/08/201815.07
14/11/2017InterimEUX4.8430/03/201730/09/201723/11/201724/11/201702/02/20180
16/05/2017FinalEUX10.0331/03/201631/03/201708/06/201709/06/201704/08/201714.77
15/11/2016InterimEUX4.7430/03/201630/09/201624/11/201625/11/201603/02/20170
17/05/2016FinalGBX7.7731/03/201531/03/201609/06/201610/06/201603/08/201611.45
10/11/2015InterimGBX3.6830/03/201530/09/201519/11/201520/11/201503/02/20160
19/05/2015FinalGBX7.62231/03/201431/03/201511/06/201512/06/201505/08/201511.22
11/11/2014InterimGBX3.630/03/201430/09/201420/11/201421/11/201404/02/20150
20/05/2014FinalGBX7.4731/03/201331/03/201411/06/201413/06/201406/08/201411
12/11/2013InterimGBX3.5330/03/201330/09/201320/11/201322/11/201305/02/20140
21/05/2013FinalGBX6.9231/03/201231/03/201312/06/201314/06/201307/08/201310.19
13/11/2012InterimGBX3.2730/03/201230/09/201221/11/201223/11/201206/02/20130
22/05/2012FinalGBX6.4731/03/201131/03/201206/06/201208/06/201201/08/20129.52
08/11/2011SpecialGBX430/03/201130/09/201116/11/201118/11/201103/02/20120
08/11/2011InterimGBX3.0530/03/201130/09/201116/11/201118/11/201103/02/20120
17/05/2011FinalGBX6.0531/03/201031/03/201101/06/201103/06/201105/08/20118.9
09/11/2010InterimGBX2.8530/03/201030/09/201017/11/201019/11/201004/02/20110
18/05/2010FinalGBX5.6531/03/200931/03/201002/06/201004/06/201006/08/20108.31
10/11/2009InterimGBX2.6630/03/200930/09/200918/11/200920/11/200905/02/20100
19/05/2009FinalGBX5.231/03/200831/03/200903/06/200905/06/200907/08/20097.77
11/11/2008InterimGBX2.5730/03/200830/09/200819/11/200821/11/200806/02/20090
27/05/2008FinalGBX5.0231/03/200731/03/200804/06/200806/06/200801/08/20087.51
13/11/2007InterimGBX2.4930/03/200730/09/200721/11/200723/11/200701/02/20080
29/05/2007FinalGBX4.4131/03/200631/03/200706/06/200708/06/200703/08/20076.76
14/11/2006InterimGBX2.3530/03/200630/09/200622/11/200624/11/200602/02/20070
24/05/2006FinalGBX3.8731/03/200531/03/200607/06/200609/06/200604/08/20066.07
15/11/2005InterimGBX2.230/03/200530/09/200523/11/200525/11/200503/02/20060
24/05/2005FinalGBX2.1631/03/200431/03/200501/06/200503/06/200505/08/20054.07
16/11/2004InterimGBX1.9130/03/200430/09/200424/11/200426/11/200404/02/20050
25/02/2004FinalGBX1.0831/03/200331/03/200402/06/200404/06/200406/08/20042.03
18/11/2003InterimGBX0.9530/03/200330/09/200326/11/200328/11/200306/02/20040
27/05/2003FinalGBX0.931/03/200231/03/200304/06/200306/06/200308/08/20031.69
12/11/2002InterimGBX0.7930/03/200230/09/200220/11/200222/11/200207/02/20030
28/05/2002FinalGBX0.7531/03/200131/03/200205/06/200207/06/200209/08/20021.47
13/11/2001InterimGBX0.7230/03/200130/09/200121/11/200123/11/200108/02/20020
29/05/2001FinalGBX0.7131/03/200031/03/200106/06/200108/06/200110/08/20011.4
14/11/2000InterimGBX0.6930/03/200030/09/200020/11/200022/11/200009/02/20010
05/06/2000FinalGBX0.6801/10/199931/03/200007/06/200009/06/200021/08/20001.53
06/06/1999FinalGBX0.6531/03/199831/03/199914/06/199918/06/199913/08/19991.45
02/06/1998FinalGBX0.5631/03/199731/03/199808/06/199812/06/199814/08/19981.27

Top Dividend Posts

DateSubject
29/5/2020
06:44
muscletrade: Struggling telecommunications firm Vodafone-Idea saw its share price jump 15% in the initial few minutes of trade on Friday as investors reacted to the news of internet giant Google considering a 5% equity stake buy in the company. Vodafone Idea stock has been hammered on Dalal Street severely in the last one year, falling over 56% till yesterday. Google, although talks are in very early stages as reported by The Financial Times, could see itself battling Mark Zuckerberg’s Facebook if it invests in Vodafone-Idea. The stock was trading at Rs 6.65 per share on NSE. Vodafone-Idea — the joint venture between UK-based Vodafone and India’s Aditya Birla Group — has been struggling to stay afloat after the Supreme Court of India refused to budge on the demand that telecom operators pay their Adjusted Gross Revenue (AGR) dues. For Vodafone-Idea the amount, as calculated by the Department of Telecommunications, stands at Rs 58,000 crore. Kumar Mangalam Birla, the Chairman of Aditya Birla Group had earlier this year said that the company might ‘shut shop’ after the AGR ruling by the Supreme Court while Vodafone refused to inject more funds into the Indian venture and also wrote-off the entire value of its Vodafone-Idea stake. The firm’s self-assessment puts the AGR dues figures at Rs 21,533 crore of which the company had paid Rs 6,500 crore till the middle of March. The investment will not just save the cash-strapped Vodafone-Idea but will also pit Google against Facebook, which has recently invested Rs 43,574 crore in Mukesh Ambani’s telecom venture Reliance Jio for a 10% equity stake. With the growing user base of mobile internet data in India, the two internet giants could battle for supremacy. India’s telecom industry is witnessing a three-horse race currently, with Bharti Airtel and Reliance Jio fighting for the top spot and Vodafone-Idea lagging behind for quite some time now. India’s richest man Mukesh Ambani has stepped up his game as he targets the number one spot. Ambani has roped in $10 billion or Rs 75,000 crore in a month’s time from foreign investors for Jio Platforms Limited. Among investors who have picked up a stake in Jio are — Facebook, KKR, General Atlantic, Vista Equity Partners, and Silver Lake. The attractive telecom space in India which is still to chart many milestones is seeing more and more internet mobile data usage during the nation-wide lockdown.
13/5/2020
06:54
muscletrade: Results from Vodafone PLC (LON:VOD) got a positive report card from City analysts for its annual results, with maintenance of the dividend a highlight after 43 of the FTSE 100 have so far cut, suspended, deferred or cancelled their payouts amid the coronavirus outbreak. The telecoms group's full-year numbers were "reassuring on a number of fronts", analysts at UBS said, with many more positives than negatives. One of the key upbeat notes was that organic service revenues of 1.6% in the fourth quarter were notably ahead of the consensus forecast of 0.9%, with the improvement driven by notably lower declines in Spain and Italy. With a massive €42.2bn debt mountain to chip away at, other highlights picked out by the Swiss bank's number crunchers were that the planned 'monetisation' of the European Towers arm via an IPO early next year “should lead to a step-down in leverage”; while there was also heart taken from the new announcement of a €1bn of run-rate savings to be made in the coming three years, up from €400mln that had previously been factored in. Dividend in focus While the outlook remains somewhat clouded by coronavirus, UBS hailed the maintenance of the 9 eurocents dividend, “well covered” by free cash flow and said, “we think there are enough positives for VOD to reverse its recent underperformance vs the sector.” Richard Hunter, head of markets at Interactive Investor, said that the “prodigious cash generator” maintaining its dividend “will be a pleasant relief to increasingly starved income-seekers”;. “The projected yield of over 7%, even if partly driven by a weaker share price, is nonetheless particularly attractive given not only the current interest rate environment but also the relative lack of income options elsewhere,” he said. Comparing to FTSE telecoms peer BT, which cut its dividend last week to preserve cash for investment, was odious, felt William Ryder at Hargreaves Lansdown, as the structures of the two groups differ so much, “but Vodafone shareholders will still be glad their management team feels secure enough to keep paying through the pandemic and transition to 5G”. Indeed, it is “a far cry from last May”, said Russ Mould, investment director at AJ Bell, recalling when Vodafone's new chief executive Nick Read sanctioned the first dividend cut in the company’s history. “Vodafone̵7;s ability to hold the (reduced) dividend rests upon its cash flow, where there was a marked improvement in performance in the year to March 2020,” Mould said, noting that free cash flow jumped strongly as the company optimised its portfolio of assets, cut costs and benefited from ever-growing data and video consumption by consumers via their mobile devices. He noted that the telco is the Footsie's ninth biggest payer in cash dividend terms, based on their last full-year payment. Spinning many plates Looking at the telecoms group's operations, Hunter and Ryder both noted how the multinational nature of the business, especially with the European operations bought from Liberty Global for €18.4bn last summer, means Vodafone is spinning many plates. “But there are signs that the overall picture is improving after some difficult times,” said Hunter, picking out the improvement in revenues and a return to underlying profits from a previous loss of €2.6bn, noting that the increasingly important German business was reaping the rewards of retail growth, offering cost synergies and a “potentially rich seam of cross-selling opportunities”, including from the company's 5G roll-out reaching 97 cities across eight European markets. With the Covid-19 pandemic has been “something of a curate’s egg” for the telecoms group, Hunter added, with international roaming falling 65-75% but being slightly offset by higher data usage and lower customer churn. Ryder noted the biggest wobble among Vodafone's spinning plates was probably the adverse judgement from India’s Supreme Court, which cost shareholders €2.5bn, though he felt that this was relatively small cheese among the whole group, especially as the core business segments were “doing reasonably well, and the group put in a good performance in almost all major markets”. All in all, Hunter felt Vodafone has “defied the odds during a difficult year” and although he felt there is “some considerable way to go in assuaging investors who have seen the shares plummet 46% over the last two years”, he said the market consensus of the shares as a strong buy has not wavered. Indeed, UBS kept its 'buy' rating and 190p price target. Mould was more circumspect, eyeing Shell as an example for how “asset disposals and capex optimisation can only take you so far when it comes to paying a dividend and it still feels as if Vodafone is having to work hard to generate sufficient cash to keep the dividend truly comfortable. “The UK’s 5G auction, whenever it happens, could be the next key test,” he said. “Growth prospects for the [dividend] feel limited as a result and history shows that over the long term it is those companies which prove capable of consistently providing dividend increases that provide the best share price performance and total returns, rather than those that have to fight hard to defend an already fat pay-out. “Vodafone̵7;s unchanged dividend is a clear source of relief for investors today but whether it translates into a sustained rally in the shares from 12-year lows remains to be seen.”
30/1/2020
11:40
spud: Why I think the Vodafone share price could surge in 2020 Alan Oscroft | Wednesday, 29th January, 2020 https://www.fool.co.uk/investing/2020/01/29/why-i-think-the-vodafone-share-price-could-surge-in-2020/ On Wednesday, Vodafone (LSE: VOD) told us it has agreed to sell its 44% shareholding in Vodafone Egypt. The sale, for $2,392m to Saudi Telecom Company, is not in itself particularly momentous. But I think it represents one more step in Vodafone’s improving business focus. It comes a few days after it announced a partnership with Sunrise of Switzerland. I like to see the group taking part in more modern networks and services in developed countries. We’ve had a series of new tie-up announcements, and I think it’s mostly heading in the right direction. For a long time, I’ve seen Vodafone as a ragbag of worldwide phone companies. In fact, I’ve found it hard to see anything beyond the sum of the parts. Couple that with a long-term overvaluation, plus stubborn and unaffordable high dividends, and I saw a sell. Dividend The dividend problem has been, at least partially, alleviated now. Vodafone finally slashed the annual payment, by 40%, for the year to March 2019. But it was still nowhere near covered by earnings that year. Cover should return by 2021 if analyst forecasts are accurate, but it will be very thin at around 1.1 times. But sentiment, at least, does seem to be turning in Vodafone’s favour. After falling approximately 40% in the five years to May 2019, Vodafone shares have been picking up. And since that 2019 low, we’ve seen a 24% rise. Forecast earnings for the year to March 2020 put Vodafone shares on a P/E of 24, which might seem steep. But after a few up-and-down years, analysts are predicting some solid earnings growth to come. A predicted EPS increase of 35% in 2020/21, followed by another 20% for 2021/22, would drop the P/E to around 14.5. If earnings rises should continue beyond then, I could see that as a tempting growth valuation. But it’s more than two years away, 5G technology is only just getting started, and there’s intense competition. Resurgence? I do expect the Vodafone share price recovery to continue throughout 2020. That’s essentially because the 5G thing, plus those earnings forecasts, paint a tempting growth picture. And investors always seem ready to jump on the next growth prospect. But I fear the optimism is premature, and that the resurgence could turn bad again over the next couple of years. Vodafone will need to invest a lot of cash before it sees big profits from 5G technology, and I wonder if those forecasts are unjustifiably rosy. Then there’s Vodafone’s debt. At the halfway stage at 30 September, net debt stood at €48.1bn, up from €27bn at 31 March. That massive rise was partly due to assuming debt of €18.5bn from the acquisition of Liberty Global assets, but some was down to cash outflow. Dividend again That doesn’t help with the expenditure needed for all that 5G investment. Vodafone’s withdrawal from its older and lower-technology markets and the offloading of those assets is generating cash. But they’re not huge sums, and I can see a financial squeeze coming. The dividend cut that we’ve already seen needed to have come a lot sooner, and I reckon the current dividend should be pared back even further. Until I see Vodafone’s cash management looking a lot more settled, I’m keeping away — even if I do think there’ll be short-term gains. spud
03/12/2019
10:50
tgkg: : London South East Our new Cryptocurrency section has arrived! Click here Share PricesVodafone Share PriceVodafone Share Chat Pin to quick picksVodafone Share Chat (VOD) VOD Share Price VOD Share Price VOD Share News VOD Share News VOD Share Chat VOD Share Chat 5 VOD Share Trades VOD Share Trades 4,873 VOD Live RNS VOD Live RNS VOD Information Buy VOD SharesBuy VOD SharesAdd VOD to WatchlistAdd VOD to WatchlistAdd VOD to AlertAdd VOD to AlertAdd VOD to myTerminalAdd VOD to myTerminal Share Price Information for Vodafone (VOD) London Stock Exchange Share Price is delayed by 15 minutes Get Live Data Share Price: 146.54 Bid: 146.52 Ask: 146.54 Change: -1.84 (-1.24%) Spread: 0.020 (0.01%)Open: 148.22High: 148.86Low: 146.30Yest. Close: 148.38 VOD Live PriceLast checked at 10:42:20 Share Discussion for Vodafone Regular Premium Filters Post Message View Buy buy buy bargain price I work for the government, there will be never free Internet in this country as this already has failed in Australia, society would not pay extra tax to sponsor this, and as ugly as this sounds there is no money to pay for free Internet from the budget, and there will never be money for it as we were instructed to prioritise NHS and ministry of justice as whole institution, looks to me like short sellers bought the silly idea of free interrnet and sold Vodafone shares, seriously guys, be realistic, I work for the budget for 12years now, all the Internet providers will function as normal. This share price is amazing now, only because people believe that government pay for the country Internet, I can understand that parties using this fake promise but who would believe this with the debt figure for this year!!!!!
30/9/2019
11:14
spud: From MF: Should I buy the Vodafone share price, up almost 30% in 2 months? Kevin Godbold | Monday, 30th September, 2019 | More on: VOD It seems clear that the stock market has been reappraising the prospects for telecoms operator Vodafone (LSE: VOD) recently and the shares are up almost 30% over the past two months or so. I last wrote about the company in May not long after it had cut its dividend. The debts were high, cash inflow had been flat for years, and the share price had been falling for around 17 months, wiping off more than 40%. I argued back then that there’s nothing in the financial record to suggest that Vodafone was gaining ground with its earnings, so I was avoiding the shares. Monetising its assets But Vodafone has out-foxed me since! On 26 July the firm announced plans to unlock value for shareholders by creating “Europe’s largest” tower company. The idea is that 61,700 of the company’s towers will be separated into a new organisation planned to be operational by May 2020, with its own management team. Vodafone is looking at ways to monetise the assets, which could include an IPO of the new tower company. It seems like a smart move. Cashing in the inherent value of its own assets will help the firm reduce its big debt load later on. And the market likes it. The shares shot up about 15% when the announcement hit the newswires and the price has been drifting up ever since. But City analysts following the firm are still only predicting flat revenue, cash flow and dividends ahead, which I find it difficult to become excited about. Upgrading the network Right now, Vodafone is busy rolling out its 5G network. But where will it end, 6G, 7G… 27G? One of the big challenges in the business, as I see it, is that technology keeps evolving and so does the need for Vodafone to reinvest. But does the reinvestment score the firm much competitive advantage, or is it just a cost involved to keep up? Vodafone used to be a fast-growing player in an exciting, up-and-coming sector, but now I see it as a commodity-style provider of services that will probably never shoot the lights out with growth again. Indeed, I suspect most investors coming to Vodafone today will be attracted by its dividend yield, which is running just above 5% with the shares at 163p. But I want my dividend-paying investments to be supported by generally rising revenues, earnings, cash flows and share prices. Right now, most of those things remain flat with Vodafone, which unsurprisingly leads to a flat dividend. Maybe we’ll see the new infrastructure deal regarding the towers help things along for a while. But let’s not forget that the share price has recently plunged and the dividend has been cut. I’d feel nervous holding the shares for, say, the next 10 years, so I’ll continue to avoid them now. spud
20/9/2019
12:49
spud: What’s next for the Vodafone share price and its 5.5% yield? Rupert Hargreaves | Friday, 20th September, 2019 The Vodafone (LSE: VOD) share price hasn’t been a particularly exciting investment to own in 2019. Indeed, including dividends paid out to investors, shares in the telecommunications giant have yielded a total return of 4.6% year-to-date compared to a gain of 12.8% for the FTSE 100. Over the past 12 months, the company has underperformed the UK’s leading blue-chip index by 7.6%, including dividends. But despite this, I think Vodafone’s income credentials could make it a great addition to your portfolio. Slow and steady Vodafone is one of the largest telecoms companies in the world and, as a result, it’s growth is a constraining factor on the group’s growth. You’re not going to see the stock report 20% or 30% earnings growth in a single year, for example. However, what the stock does offer is a level of safety. Vodafone is one of the top dividend shares in the UK. The company’s commitment to dividends has helped it stand out. Over the past decade, the stock has produced an annual return of 6.5%, including dividends. I think this trend is set to continue. At the time of writing, shares in the business support a dividend yield of 5.5% and, while the group does have quite a lot of debt to deal with, management seems to be committed to maintaining this distribution. Debt concerns In the past, I’ve expressed concern about the level of debt on Vodafone’s balance sheet. I’ve also said this borrowing could weigh on the company’s dividend growth. I continue to believe that Vodafone has a debt problem, but management seems to have the issue under control. Cutting the group’s dividend by 40% at the beginning of May was, in my opinion, the right thing to do, even though it eliminated the company’s 20-year history of dividend increases. Still, the dividend production will free up billions in additional cash flow every year, which can be used to reduce debt along with the company’s assets sales. During its financial year to the end of March 2019, Vodafone generated around €5bn in free cash flow. The dividend payout consumed €4bn of this. A 40% reduction on this figure should free up €1.6bn per annum for paying down debt. That’s excluding the additional cash flow Vodafone will be able to produce from its newly acquired Liberty assets in Europe and the cash received from the sale of its mobile tower business. Cash cow Vodafone is a lumbering giant, but it’s also a cash cow. While I’m not expecting the company to report explosive earnings growth, its strong cash generation leads me to conclude its dividend is sustainable at the lower level. With this being the case, I think if you’re looking for a trustworthy dividend stock to add to your portfolio, then Vodafone could be a great candidate. Its dividend yield of 5.5% is currently above the FTSE 100 average of 4.5% and, as explained above, the distribution is well covered by free cash flow generated from operations. spud
09/9/2019
15:41
spud: Why I think the Vodafone share price could be set for a rebound Alan Oscroft | Monday, 9th September, 2019 | More on: VOD Vodafone (LSE: VOD) shares have recovered 25% since June, so am I speculating on something that’s already happened by suggesting we’re in for a rebound? Well, we have plenty of short-term spikes in shares, and many of them fail to stick. The bigger question is over Vodafone’s chances of regaining the share price levels it was at two years ago, before the long slide set in. I think it could take a while yet for the price to break 200p again, but recent developments make me think the upwards move could be poised to continue. Slash The shares had been looking very poorly after the telecoms giant finally slashed its dividend in May by 40%, after years of paying out huge amounts of cash that were nowhere near covered by earnings. I’ve always maintained that an over-generous dividend policy while there’s huge debt on the books is folly — it’s effectively borrowing money to hand to shareholders. And while those who were firmly attached to their unsustainable 6%+ yields were somewhat miffed, I was pleased to see an inkling of common sense creeping back. Sell Then in July, at the same time that a trading update provided hints of improving market conditions, Vodafone revealed plans to spin off its mobile tower operations into a separate new business. Provisionally dubbed ‘TowerCo’;, the demerged entity would control Europe’s largest tower portfolio (61,700 of the things across 10 markets) with an estimated EBITDA of around €900m. It might even result in a separate flotation, but we’ll have to see how that develops. The market responded enthusiastically, triggering a share price uplift that has since continued. I see it as a good move too, as it’s starting to address my other key uncertainty over Vodafone. To me, the business has looked like a jumbled mess of individual country-specific operations and I haven’t been able to uncover much in the way of an overall joined-up strategy. This could be an important step. Smile In recent years I’ve seen the Vodafone share price as being largely led by sentiment, following on from a time when the industry was awash with takeover rumours and shares were just too highly valued. The subsequent slide has taken care of a lot of that, and investors are starting to regain some of their past enthusiasm. I’ve taken a look at the most popular shares in August, and I covered a few you’ll know well if you read these pages. But one I didn’t mention was Vodafone. While much of the DIY investment activity was focused on safety (like buying gold), the most bought share in the month was Vodafone (with National Grid in second place, ahead of Lloyds Banking Group). Buy? The shares are still on a toppy valuation for the current year with a forward P/E of 22, but big earnings growth forecasts are on the cards and that multiple would drop to 17 by 2020. And, by then, even the pared down dividend would be back up to a predicted 5.3% yield. That’s looking like a sustainable valuation to me, and I think Vodafone could be finally heading out of the woods. spud
07/7/2019
09:20
adrian j boris: THE MOTELY FOOL This is what I’d do with the Vodafone share price right now Roland Head | Sunday, 7th July, 2019 | More on: VOD Illustration showing how the world is connected Image source: Getty Images. The Vodafone Group (LSE: VOD) share price is bumping along at about 130p — its lowest level since the 2008 financial crisis. Is the telecom giant’s lowly share price justified? Probably, in my view. Should you sell the shares? I don’t think so. Here, I’ll explain why I feel holding onto Vodafone stock might be the best plan right now. Finally, what a relief! In May, Vodafone boss Nick Read finally bowed to necessity and cut the group’s dividend by 40%. Shareholders may have felt disappointed, but in my view this was a good decision that should end up helping investors. When I last looked at the telecoms giant in March, I explained why I thought the group’s debt levels were too high. My view was that the company’s latest issue of debt seemed like a cunning plan, but didn’t leave any scope for debt repayments. Put simply, I thought Read was in danger of being too clever for his own good. A cash cow? The dividend cut put Vodafone back on my radar as a potential buy. You see, despite the firm’s heavy investment in new networks, its free cash flow is still pretty good. Last year, the firm generated €4.4bn of free cash flow, even after buying 5G spectrum and paying cash restructuring costs. This level of free cash flow would have been swallowed up by the old dividend, leaving no cash spare for debt reduction. But my sums suggest if this level of cash generation can be maintained, the new reduced dividend should leave about €1.5bn spare to help reduce debt. Ultimately, that’s good news for shareholders as it makes the dividend safer. Buy, sell or hold? I think Vodafone could remain out of favour with investors for a little while longer yet. But I no longer view the stock as a sell. In my view, the company’s continued strong cash generation and dividend cut make the valuation seem much more appealing. It’s worth noting that at current levels, this global business is trading on just 8.7 times free cash flow. I think that’s an attractive valuation, if it’s sustainable. A second attraction is that earnings are expected to rise significantly next year. Broker forecasts show City analysts expect earnings to rise by 27% to €0.10 per share in 2020/21. That would put the stock on a fairly reasonable rating of 14 times earnings. Even after the dividend cut, VOD shares offer a forecast dividend yield of 6.9% for the current year. That puts the shares firmly into high-yield territory. I won’t be adding Vodafone shares to my portfolio, because I already own BT Group shares. The broadband and mobile group is too similar for me to want to double up. But if I was looking for a telecoms dividend stock to buy today, Vodafone would definitely be on my radar and might be my top choice.
11/6/2019
11:25
maywillow: cityam Tuesday 11 June 2019 11:00 am Vodafone: Has the share price found a floor? What is city talk? Latest Share Interactive Investor Talk Contributor Follow Interactive Investor By Graeme Evans from interactive investor. At extreme levels and with a heap of bad news priced in, this analyst discusses how they can recover. Vodafone: Has the share price found a floor? Source: iStock Rebuilding confidence in the battered Vodafone (LSE:VOD) share price won’t be quick or easy, particularly with sentiment still largely negative after last month’s first ever dividend cut. What matters most at the moment is whether the blue-chip stock has found a floor after diving to a near ten-year low in the wake of CEO Nick Read’s dramatic 40% dividend reduction. Analysts at UBS think they probably have, arguing in a note published today that the negative news surrounding the mobile phone giant now looks to be largely priced in. They said: “We think the share price underperformance over the past 12 months has been overdone and that the shares can re-rate as operating momentum gradually improves and overhangs disappear.” While the Vodafone valuation now looks cheap, the broker believes that re-rating may have to wait until there are signs of a stabilisation in service revenues. Vodafone will also need to show it can successfully monetise its portfolio of phone masts and towers, as well as sell other assets on top of existing plans to offload its New Zealand business to private equity. UBS continues to hold a price target of 207p, which is among the more optimistic in the City. Shares fell 4% last week to 128.4p, although this reflected the impact of the stock going ex-dividend. Source: TradingView Past performance is not a guide to future performance The broker’s research describes investor sentiment overall as remaining bearish, with long-only investors more likely than hedge funds to be pessimistic. “We think the share price is at extreme levels and is assuming that revenue declines continue,” they added. UBS notes there’s been limited push-back from investors on the reasons behind the dividend cut, with Vodafone looking to de-leverage at a time when resources are already strained by 5G spectrum auctions and infrastructure demands. Among its reasons for optimism, UBS points to continued strong growth in mobile data usage and evidence that consumers are still willing to pay more for their services. This should support the key metric of average revenue per user (ARPU). While European ARPUs are low compared with other markets such as United States, UBS sees improving trends in the UK and Germany as customers pay more for extra services. This should contribute to a gradual improvement in service revenue trends from the second quarter of this financial year, helped by favourable comparatives against last year. The broker added: “While risks remain that promotional activity in Spain could flare up again when Vodafone loses the La Liga rights, the outlook in the UK and Germany looks resilient.” Even after last month’s dividend cut, the yield on Vodafone shares has remained punchy at around 6%. The group has also committed to returning to a progressive dividend policy. The purchase of European assets from Liberty Global in May 2018 fuelled Vodafone’s debt worries, leading to leverage approaching three times underlying earnings. The question now for Vodafone investors will be whether Read can maximise the benefits of the Liberty deal, as well as boost returns from infrastructure assets and achieve his business simplification goals. These articles are provided for information purposes only.
25/1/2019
16:20
la forge: --Vodafone shares hit their lowest level since 2010 after the telecoms company reported a third-quarter revenue decline and warned the slump will continue into the fourth quarter. --Vodafone blamed price competition in Italy and Spain, as well as weak consumer spending in South Africa for the weaker revenue figure. --New Chief Executive Nick Read is under pressure to turnaround Vodafone's revenue and reduce its debt pile, in order to avoid cutting the dividend. By Adam Clark Vodafone Group PLC (VOD.LN) shares hit their lowest level for almost a decade on Friday, after new Chief Executive Nick Read failed to convince investors the telecommunications giant can arrest falling European revenue. London-based Vodafone said it generated revenue of 11 billion euros ($12.48 billion) in the quarter to Dec. 31, compared with EUR11.80 billion in the year-earlier period. Revenue was hit by accounting changes, the sale of its Qatari business and foreign exchange. Organic service revenue--a figure closely watched by analysts--rose 0.1% in the third quarter, Vodafone said. This represents a slowdown from the 0.5% increase posted for the three months to Sept. 30. Service revenue declined 1.1% in Europe on an organic basis to EUR7.50 billion. Vodafone's consumer businesses in Spain and Italy were hit by continuing price competition, while growth slowed in Germany. Earlier in January, Vodafone said it plans to cut up to 1,200 jobs in Spain, almost a quarter of its workforce. "Lower mobile contract churn across our markets and improved customer trends in Italy and Spain are encouraging. However, these have not yet translated into our financial results," Chief Executive Nick Read said. Mr. Read, who took over from long-serving head Vittorio Colao in October, told analysts that Vodafone's fourth-quarter looked set to be the trough of its European service revenue ahead of easier comparative periods in its new fiscal year. The prospect of further revenue decline spooked investors and Vodafone shares traded down over 4% by afternoon in the London session, hitting their lowest price since 2010. Organic growth also slowed in Vodafone's Rest of World segment, where a 4.9% increase fell short of the 7.7% achieved in the preceding quarter. Vodafone blamed lower data-revenue growth in South Africa amid a slowdown in consumer spending. Continued revenue decline has raised doubts over Vodafone's generous dividend payout, which now stands at 9% of its share price and has risen every year since 1990. Profits no longer fully cover the payout, which was frozen in November while Mr. Read tackles the company's EUR32.1 billion debt pile. Vodafone has options with its towers but also faces a threat from 5G spectrum," says RBC's Wilton Fry. "We regard the dividend as unsustainable even before we consider a macro downturn." Mr. Read has laid out plans to reduce operating costs by EUR1.2 billion by 2021. Earlier this week Vodafone struck a deal with Telefonica SA's (TEF.MC) O2 brand to share 5G, and potentially open the path to a sale of their joint-venture mobile mast business in the U.K. Vodafone maintained its guidance for underlying organic adjusted earnings before interest, taxes, depreciation and amortization--its preferred profit measure--to grow around 3% in the year ending March 31, and for free cash flow of around EUR5.4 billion. --Adria Calatayud contributed to this article. Write to Adam Clark at adam.clark@dowjones.com (END) Dow Jones Newswires January 25, 2019 10:40 ET (15:40 GMT)
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