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 Last Trade
-0.96 -0.77% 124.36 16:29:59
Open Price Low Price High Price Close Price Previous Close
125.98 123.94 127.00 124.36 125.32
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
16/11/2020InterimEUX4.530/03/202030/09/202017/12/202018/12/202005/02/20210
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
16/11/2020
08:23
grupo guitarlumber: Philip Whiterow 07:38 Mon 16 Nov 2020 viewVodafone Group PLC Vodafone revenues dip as COVID-19 disruption restricts roaming fees The mobile group confirmed it expected to complete the listing of Vantage Towers early in the New Year Vodafone Group PLC - Vodafone revenues dip as COVID-19 disruption restricts roaming fee income Vodafone PLC’s (LON:VOD) first-half performance was affected by a drop in roaming income as coronavirus restrictions stopped people travelling. Revenue in the six months to 30 September dropped by 2.3% to €21.4bn, with lower handset sales also taking a toll alongside the COVID-19 issues. Underlying profits (adjusted EBITDA) fell 1.9% to €7.0bn, though profits were helped by €300mln of cost-saving. The interim dividend was maintained at 4.50c following the reduction in the final payment last time. Net debt dropped to €44bn from €48.1bn a year ago, while the balance sheet is likely to be to further strengthened by the imminent IPO of infrastructure business Vantage Towers. The mobile group confirmed it expected to complete the listing of Vantage Towers early in the New Year with more details expected tomorrow at a shareholder day. Guidance for the full year was also confirmed at underlying profits of between €14.4-14.6bn with free cash flow of at least €5bn. Nick Read, chief executive, said it was a resilient first-half performance “COVID-19 and the reduction in roaming revenues, through the significant reduction in international travel, is currently obscuring our underlying commercial progress, with Q2 service revenue growing by 1.5% excluding roaming,” he said. Proactiveinvestoors
11/11/2020
16:41
grupo guitarlumber: Vodafone’s prospects and 7% dividend yield remain undervalued by Graeme Evans from interactive investor | 11th November 2020 15:07 Share on: The shares are up over 10% this week, but there should be much more to come, argues this expert. vod tower The potential for a re-rating of Vodafone (LSE:VOD) shares was raised today when a leading industry analyst signalled the mobile phone giant is over the worst of its revenues downturn. UBS's Polo Tang said next Monday's second-quarter and half-year results were likely to represent a low point, with Q2 service revenues set to be 2.3% lower due to the impact of travel bans on roaming activity. He expects a recovery in the current quarter to 1.2% lower and says shares should be trading at 188p, compared with the 116p seen this afternoon after a rally of 9% so far this week on the back of the Pfizer vaccine breakthrough. The FTSE 100 stock is still no better off than in August, with Vodafone and BT (LSE:BT.A) among telecom stocks shunned in the pandemic despite their exposure to working from home trends. Vodafone shares: 8% dividend yield and potential to double Vodafone: Q1 results and an IPO in 2021 Vodafone: the logic behind 80% share price upside explained Take control of your retirement planning with our award-winning, low-cost Self-Invested Personal Pension (SIPP) Data usage on both mobile and fixed broadband continues to grow strongly, which should drive average revenues per user amid evidence that consumers are willing to pay more for services. The recent launch of a new 5G iPhone should stimulate demand, with Tang noting anecdotal evidence that Vodafone has performed relatively well in Germany, the UK and Netherlands. Tang thinks that the share price currently assumes no improvement in service revenues, leading to low-to-mid single digit annual earnings declines. He said: “While the shape of any recovery may not be linear, we see Vodafone as too cheap and see scope for the shares to re-rate as European service revenues recover.” The company has a loyal following among retail investors, based on factors such as its sheer size, cash generative ability and chunky dividend yield, which, at a projected 7.3% for 2020 trading, is attractive when many big companies have chosen not to pay out at all. UBS is not alone in thinking the company is undervalued, with Deutsche Bank recently highlighting a 230p price target based in part on the value of infrastructure assets and the prospect that the company will resume growth next year. A day after its Q2 update, Vodafone will shine a light on the broader value of the company's assets when it hosts a capital markets day for the planned Frankfurt IPO of Vantage Towers, which boasts 68,000 towers and leading positions in almost all of its nine markets. Vodafone: the logic behind 80% share price upside explained Take control of your retirement planning with our award-winning, low-cost Self-Invested Personal Pension (SIPP) Deutsche analyst Robert Grindle said recently that deals elsewhere in the sector had given a favourable view on assets within Vodafone, which he calculated were the highest of the European telco large-caps and equivalent to 75% of enterprise value. UBS's Tang thinks that next week's guidance from Vodafone will continue to point to a broadly flat underlying earnings picture for the full year and free cash flow in the region of more than 5 billion euros. European service revenues are forecast to be down 3.5% in the second quarter, improving to a fall of 2.1% in the current quarter. Deutsche recently noted the biggest threats to the Vodafone recovery as increased competition, foreign exchange volatility and execution risk on recently acquired assets from Liberty Global, as well as longer term economic malaise due to Covid-19. These articles are provided for information purposes only. Occasionally, an opinion about whether to buy or sell a specific investment may be provided by third parties. The content is not intended to be a personal recommendation to buy or sell any financial instrument or product, or to adopt any investment strategy as it is not provided based on an assessment of your investing knowledge and experience, your financial situation or your investment objectives. The value of your investments, and the income derived from them, may go down as well as up. You may not get back all the money that you invest. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser. Full performance can be found on the company or index summary page on the interactive investor website. Simply click on the company's or index name highlighted in the article.
21/10/2020
11:00
spud: https://uk.sports.yahoo.com/news/vodafone-share-price-one-best-092443416.html Vodafone has been working through some severe headwinds over the past few years. Rising competition in its core UK and European markets, as well as an ongoing battle with authorities in India, have dampened investor sentiment towards the group. A highly leveraged balance sheet also forced management to cut the company’s dividend last year, to free up more cash for debt repayment. However, it looks as if the business has worked through many of these issues. A couple of months ago, the group announced that it would stick by its final dividend for the year. This was thanks to free cash flow growing by more than a tenth to €4.9bn during the first half. Meanwhile, pre-tax return on capital employed — a measure of profitability for every £1 invested in the business — rose from 5.3% to 6.1%. These numbers tell me that Vodafone is progressing with its transformation. Indeed, management attributed part of the higher return on assets to the group’s digital transformation and improving asset utilisation. Unfortunately, group debt continues to weigh on the Vodafone share price. Net debt ballooned by more than half to €42.2bn in the first part of the company’s current financial year. The purchase of Liberty Global‘s European assets was responsible for a large part of the increase. Still, the group says it’s on track to list its European tower business in the first half of next year, which should give the company a cash infusion. It’s also planning to deliver €1bn net cost savings from its three-year digital transformation programme. Considering all of the above, I reckon that while the near term outlook for the Vodafone share price is uncertain, in the medium to long term, the stock should prove to be a good investment. More importantly, it doesn’t seem as if the company is going to cut its dividend again any time soon. That’s good news for income investors. The stock currently supports a dividend yield of 7.5%, giving it one of the highest dividend yields in the FTSE 100. This level of income also implies that investors will be paid to wait for the company’s turnaround to play out. Further, the Vodafone share price looks desperately cheap after recent declines. The stock is trading at an enterprise value-to-earnings before interest tax depreciation and amortisation (EV/EBITDA) ratio of 4.2. The rest of the telecommunications sector is dealing at an EV/EBITDA ratio of 5.2, suggesting Vodafone is undervalued by around 25%. spud
08/10/2020
06:00
muscletrade: The working from home trends driving tech stocks Apple (NASDAQ:AAPL) and Amazon (NASDAQ:AMZN) have so far done little for shares in the telecoms sector after a woeful year for the likes of Vodafone and BT Group. The gulf in tech/telco performance was highlighted today by Deutsche Bank in a note focusing on Vodafone, whose share price it thinks is out of kilter with fundamentals. As such, it should be trading at 230p rather than near to a post-Covid low of around 110p currently. Deutsche said telco business models are substantially resilient to Covid-19 and should benefit from the working from home phenomenon, given increased internet usage and data traffic. The lack of international travel is one negative factor due to the impact on roaming revenues, with Vodafone's exposure to emerging market currencies another drag in the pandemic. The shares had rallied 40% to 141p by mid-June — helped by the payment of a 4.5 cents final dividend in annual results — but have fallen back again in recent weeks. They are now trading at just 12p or 12% above their March low, despite Q1 figures in July highlighting service revenues in line with expectations. It's been a similar share price story at BT Group (LSE:BT.A), although its lowly £10 billion valuation more reflects the uncertainty caused by the cost of funding the rapid roll-out of full-fibre broadband. Deutsche thinks market forces may be at play in the sector's underperformance, given that local indices account for about 75% of the variation in European telco stock price moves. Following on from this logic, a post-Brexit trade deal could work in favour of the sector. The bank added: “In the absence of a deal, telcos should be less impacted due to their predominantly domestic nature and outperform the UK market at least.” One big reason for Deutsche favouring Vodafone is the company's ability to continue paying a healthy dividend with an 8% yield. The bank also highlighted the value of Voda's infrastructure assets and the prospect that the company will resume growth next year. It is also looking forward to next year's Frankfurt IPO of Vantage Towers, the company's phone masts business boasting 68,000 towers and leading positions in almost all of its nine markets. A capital markets day due on 17 November will focus on the Vantage sale and should at least help shine a light on the broader value of the company's assets. Deutsche also expects half-year results due the day before to provide investors with some encouragement on Vodafone's trading outlook and dividend policy. The company has a loyal following among retail investors, based on factors such as its sheer size, cash generative ability and chunky dividend yield, which is particularly attractive when many companies have recently chosen not to pay out at all. Deutsche added: “Chief risks to our ‘buy’ rating stem from increased competition, forex volatility, execution on integrating recently acquired assets and longer-term economic malaise due to the virus.”
07/10/2020
12:56
ariane: Vodafone shares: 8% dividend yield and potential to double by Graeme Evans from interactive investor | 7th October 2020 12:55 This expert believes a post-Brexit trade deal could boost the sector and share prices. The working from home trends driving tech stocks Apple (NASDAQ:AAPL) and Amazon (NASDAQ:AMZN) have so far done little for shares in the telecoms sector after a woeful year for the likes of Vodafone and BT Group. The gulf in tech/telco performance was highlighted today by Deutsche Bank in a note focusing on Vodafone, whose share price it thinks is out of kilter with fundamentals. As such, it should be trading at 230p rather than near to a post-Covid low of around 110p currently. Deutsche said telco business models are substantially resilient to Covid-19 and should benefit from the working from home phenomenon, given increased internet usage and data traffic. The lack of international travel is one negative factor due to the impact on roaming revenues, with Vodafone's exposure to emerging market currencies another drag in the pandemic. The shares had rallied 40% to 141p by mid-June — helped by the payment of a 4.5 cents final dividend in annual results — but have fallen back again in recent weeks. They are now trading at just 12p or 12% above their March low, despite Q1 figures in July highlighting service revenues in line with expectations. Vodafone: Q1 results and an IPO in 2021 Share Sleuth: putting profits to work to add a new holding It's been a similar share price story at BT Group (LSE:BT.A), although its lowly £10 billion valuation more reflects the uncertainty caused by the cost of funding the rapid roll-out of full-fibre broadband. Deutsche thinks market forces may be at play in the sector's underperformance, given that local indices account for about 75% of the variation in European telco stock price moves. Following on from this logic, a post-Brexit trade deal could work in favour of the sector. The bank added: “In the absence of a deal, telcos should be less impacted due to their predominantly domestic nature and outperform the UK market at least.” One big reason for Deutsche favouring Vodafone is the company's ability to continue paying a healthy dividend with an 8% yield. The bank also highlighted the value of Voda's infrastructure assets and the prospect that the company will resume growth next year. It is also looking forward to next year's Frankfurt IPO of Vantage Towers, the company's phone masts business boasting 68,000 towers and leading positions in almost all of its nine markets. A capital markets day due on 17 November will focus on the Vantage sale and should at least help shine a light on the broader value of the company's assets. Deutsche also expects half-year results due the day before to provide investors with some encouragement on Vodafone's trading outlook and dividend policy. The company has a loyal following among retail investors, based on factors such as its sheer size, cash generative ability and chunky dividend yield, which is particularly attractive when many companies have recently chosen not to pay out at all. Deutsche added: “Chief risks to our ‘buy’ rating stem from increased competition, forex volatility, execution on integrating recently acquired assets and longer-term economic malaise due to the virus.”
24/7/2020
07:57
adrian j boris: Telecoms Oliver Haill 07:43 Fri 24 Jul 2020 Follow Oliver on: viewVodafone Group PLC Vodafone revenues dip in first quarter, launches Vantage Towers ahead of IPO Organic sales fell 1.3% in the first quarter, mostly from the coronavirus pandemic hitting roaming charges Vodafone Group PLC - Vodafone PLC (LON:VOD) has reported a slight fall in revenue for its first quarter and confirmed that its mobile towers business will be spun-off via an initial public offer early next year. Under the new name of Vantage Towers, the business owns 68,000 towers across nine European countries from Germany to Portugal and Ireland, plus a 33.2% stake in an Italian joint venture, a newly announced merger in Greece and plans to add Vodafone’s 50%-owned UK joint venture with O2. READ: Vodafone keeps dividend on redial as customer loyalty improves in pandemic In a statement, Vodafone chief executive Nick Read said the launch was part of improving the use of the group’s assets and that Vantage Towers “will also unlock further value for shareholders” from the IPO. Focusing back on the operational telecoms business, in a separate statement, the FTSE 100 company said organic sales fell 1.3% in the quarter to June 30, 2020, mostly from the coronavirus (COVID-19) pandemic hitting roaming charges, though reported service revenues were up 1.3% to £9.1bn. UK organic revenues were down 1.9%, Germany, now the group’s biggest market, was flat, Italy and Spain were both down more than 6% but Vodacom in South Africa was up 1.5%. Read said the performance "demonstrates the relative resilience of our operating model and focused delivery of our strategic priorities" He added: “Whilst we have seen the direct impact on our revenue from travel restrictions and business project delays, we have also seen increased usage in voice and data, alongside record NGN [next-generation network] broadband customer net additions in Europe.” For the full year, the Vodafone boss said the group remained “on track” for its guidance on cutting operating expenditure and for underlying profit (EBITDA) to be “flat to slightly down” and to generate at least €5bn of free cash flow. There was no mention of the group’s debts, which at the March 30, 2020, year-end stood at around €42bn. Proactiveinvestors
07/7/2020
05:52
muscletrade: Vodafone boss buys big In that same month, Nick Read took over from Vittorio Colao as Vodafone (LSE:VOD) CEO. His new contract at the time specified that the former chief financial officer should aim for a Vodafone shareholding worth 500% of his £1.05 million salary. This stood at 495% at the end of 2019/20 financial year in March, with Read required to achieve the threshold by July 2023. He took the opportunity to meet this target when he topped up his £5.2 million of Vodafone shares on June 26, buying £573,630 of stock at a price of 128p. Read's move comes after a recovery for Vodafone shares from 98p in mid-March, although the purchase was below the 141p in early June and the 155p prior to the Covid-19 market sell-off. Jefferies recently upgraded its price target to 159p, with the City firm anticipating a recovery in European service revenues from the third quarter onwards. First-quarter results are due on July 24, when Jefferies thinks that sharp falls in Span and Italy will leave revenues 3.6% lower. Vodafone dividend decision gives big boost to income seekers Shares for the future: a test-case for essentialism Take control of your retirement planning with our award-winning, low-cost Self-Invested Personal Pension (SIPP) The Covid-19 lockdowns led to an inevitable spike in the use of data traffic, but this has been offset by the impact of lower international travel on roaming revenues. Jefferies is also looking ahead to November's half-year results, when Vodafone is expected to provide additional financial disclosure on its European tower assets. Their long-awaited sale through an IPO in early 2021 should make some inroads into a bloated net debt balance. Recent annual results point to an improving overall picture, however. The company returned to pre-tax profit with a surplus of €795 million (£716 million), while the maintenance of the final dividend was made possible by prodigious cash generation. The company also remains in the vanguard of the 5G roll-out, with a presence in 97 cities across eight European markets.
02/7/2020
10:25
spud: https://www.moneyobserver.com/how-are-telecoms-and-tobacco-stocks-faring-challenging-times How are telecoms and tobacco stocks faring in challenging times? In his FTSE Sector Watch column, Richard Hunter considers the outlook for two sectors in light of the Covid pandemic’s impact. July 1, 2020 by Richard Hunter Telecoms What has changed? Consolidation in the sector had long been predicted, and in 2016 BT acquired EE in a deal valued at £12.5 billion. In 2019, Vodafone acquired Liberty Global’s German and Eastern European operations for £18 billion. The latest in this power play came in May, with Liberty Global, owner of the UK’s largest cable company Virgin, and Telefónica, which owns Britain’s biggest mobile operator O2, confirming a 50-50 joint merger of their UK operations worth an estimated £31 billion. The deal was described as one creating a new ‘national champion’, taking direct aim at BT and Sky (itself now owned by US company Comcast after a £30 billion takeover in 2018) in the UK. The new company will offer consumers competitive bundles of TV, mobile and broadband packages, and will have 46 million customers and £11 billion in revenue. BT should be well-placed to withstand such an onslaught, however, with the combined elements of its own brand, along with EE and PlusNet, providing a formidable defence. Meanwhile, Covid-19 has also impacted the sector, affecting the outlook in several ways. What is the outlook? At Vodafone for example, the escalation of the epidemic has been something of a curate’s egg. On the one hand, there has been an inevitable spike in the use of data traffic, which plays into the group’s hands. At the same time, lower international travel has impacted Vodafone’s roaming revenues, while the very real threat of cyber-attacks has also increased over the last couple of months. BT, meanwhile, has realised that something needed to be done to mollify investors, who have seen the share price decline by 75% over the past five years. A radical overhaul of the business is under way to sharpen its prospects in an increasingly competitive arena. However, as recently announced, if ever a dividend cut was coming, it was that from BT, and not just because of the Covid-19 crisis. Even where BT is coming from a position of strength, such as in the profi able and higher-margin Openreach business, the price regulator Ofcom wants its pound of flesh. The requirement for more internet connections at ever-increasing speeds is a given for the UK consumer, but this also comes with expectations of lower prices. The acquisition of Liberty Global’s assets in Germany and central Eastern Europe is already making a notable contribution to Vodafone’s performance, with the increasingly important German unit reaping the rewards of retail growth. The purchase also offers other tangible benefits, such as significant projected cost synergies and a potentially rich seam of cross-selling opportunities: retail customers using multi-product services tend to lead to improved retention. Meanwhile, the business offering is showing signs of progress as the prevalence of remote working and multi-site operations increases exponentially during the current crisis. Vodafone remains a prodigious cash-generator, and the fact that it has maintained the dividend will be a pleasant relief to increasingly starved income-seekers. The projected yield of 7%, even if partly driven by a weaker share price, is particularly attractive in light of the current interest-rate environment and the relative lack of income options elsewhere. Tobacco What has changed? At the end of May, British American Tobacco’s South African unit (BATS) reported that it would relaunch an urgent legal action to challenge the country’s ban on cigarette sales. BATS, which has a market share of nearly 80% in the country, warned that the ban threatened the survival of the local tobacco industry. This followed what had been a cautiously optimistic operational update in April, when BATS stated that following a strong operational performance in 2019, it expected to report earnings growth for 2020 despite the impact from Covid-19 being “difficult to predict”. The company added that most of its factories had remained open at full capacity, and that it had seen a limited impact on consumer demand, pricing or the ability of consumers to access products as a result of nationwide lockdowns implemented around the world. Meanwhile, the growth of ‘ethical’ funds has also put selling pressure on tobacco stocks in general, with an announcement in early June from the UK’s largest private sector retirement fund, the Universities Superannuation Scheme, that it would be divesting its tobacco holdings, which it said represented investments in a “financially unsuitable” sector. What is the outlook? Regulation and retrospective litigation have cast long shadows on the sector over recent years, and show few signs of easing. Imperial Brands, for example, is in the firing line of the US Food and Drug Administration, where the current issue has been vapour cigarettes, especially flavoured varieties. As a result, Imperial has written down £95 million on this part of its next-generation products (NGPs). As such, NGP net revenues have recently fallen by 43%, and as a consequence, investment in these products has been reduced. On a rather more positive note, the defensive qualities of the sector have eased the impact on dividends compared with many others during the current pandemic. While Imperial reduced its dividend by a third, its yield remains significant (see below); further, it appears that one income stream that investors can expect to continue in the coming year is the dividend from British American Tobacco. The high-yielding (around 6.5%) blue-chip stock reaffirmed its 2020 outlook in its most recent update, with the company confident of delivering “another good year” of high single-figure earnings per share (EPS) growth. At the end of March, Imperial stated that there had been “no material impact” on trading from the Covid-19 pandemic, but the group was forced in May to change its tune for the remainder of the financial year. Supply chains held up reasonably well and the company saw stockpiling of some of its products in anticipation of a slowdown, but it could not accurately factor in the material effect on sales through its travel retail and duty-free lines, let alone any impact on consumer buying habits, such as trading down, given the inevitability of global recession. Reducing its unrelenting net debt of over £14 billion has become a key priority. This will be boosted by the sale of its Premium Cigar business for around £1 billion, the focus on cost containment, and a reduction of the dividend by a third. The implied dividend yield after the cut is around 8%, which remains a significant attraction to income-seeking investors in the current environment. By its own admission, it has been a disappointing time of late for Imperial and the renewed focus of concentrating on its strengths is possibly overdue. Market share has been nudging higher in its main lines, and margins remain strong given lower production costs. Richard Hunter is head of markets at interactive investor, Money Observer’s parent company. spud
13/5/2020
05:54
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.”
12/5/2020
07:58
volvo: Vodafone chief says he'll stick to strategy despite O2-Virgin Media mega-merger JIM ARMITAGE The Evening Standard Vodafone's chief executive today declared he would stick to his current strategy as a standalone mobile player despite last week's mega merger between O2 and Virgin Media. Analysts say the combination of O2's mobile network with Virgin Media's fixed line broadband will leave Vodafone looking isolated in the UK as a mobile-only company. But Nick Read, Vodafone's chief executive, said Vodafone remained the strongest competitor to BT in serving business customers - 50% of Vodafone's UK operations - and that Vodafone is already the "co-best" UK mobile network alongside BT's EE division. On business, Vodafone offers both mobile and fixed line, having bought Cable & Wireless Worldwide's fixed network in 2012. Read added that, while Vodafone did not have a fixed line network to offer household customers, it could easily wholesale from BT, which has a far bigger network. "We are the main competitor with BT in business and the major challenger in consumer, so we are happy with our organic strategy. Meanwhile, any integration is very complex. [The O2 merger] gives us an opportunity to maintain and enhance our position in the marketplace." He was speaking as Vodafone bucked the trend of major corporations slashing their dividends since the outbreak of coronavirus. Read had already announced a cut in the dividend a year ago to just nine euro cents a share from 15 cents the previous year. Today it pledged to pay that despite the covid turmoil. He explained that Vodafone had an underlying e5.7 billion of free cashflow - better than the e5.4 billion that markets had expected. Next year, despite the covid impact, it was likely to see another e5 billion. The dividend payment, which totals e2.3 billion, means Vodafone remains the FTSE-100's eighth biggest dividend payer, according to research from AJ Bell. Read today reported full year profits of e14.9 billion on an underlying basis, up 2.6% on a year earlier. The group's biggest global operations nowadays are in Germany after it bought the assets there of Liberty Global. Competition in Germany, as well as other European markets, has been fierce. Liberty's move last week to merge its Virgin Media UK broadband and entertainment business with those of Telefonica's O2 was seen as a blow to Vodafone as it had won the lucrative contract to run Virgin Media's mobile business, taking over from BT's EE division. Now, that will be done by O2. Net debt, which was e48.1 billion at the end of the last quarter, was e42 billion as Read fought to bring down the figure. Read has said he could launch a stock market flotation of Vodafone's mobile phone towers. Demand is high among buyers, and recently Vodafone and its Italian partner TIM sold a 4% stake in their Italian towers joint venture, raising around e400 million each. Mobile towers are in huge demand from investors impressed by the reliable, long term income they offer and the growth in demand likely to come from 5G. The TIM sale was priced at a multiple of 20 times its underlying profit, suggesting Vodafone's main towers business could fetch over £20 billion in a flotation. Read warned the economic impact of covid was set to be significant as it sees a big hit to its roaming charges due to the collapse in international travel. Read forecast a longer term impact, also, of people's constrained household budgets. However, he stressed that Vodafone had seen "significant increases" in data volumes as more people surfed and streamed over the internet during the lockdown. While cautioning on reading too much into the recent unusual weeks, he said underlying profits were likely to be "flat to slightly down" next year. In the UK, which makes up about 10% of the company's earnings, profits gained 10% to e1.5 billion on an underlying basis largely due to tough cost-cutting measures. Revenues were fairly flat.
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