Vodafone Share Discussion Threads

[philanderer] 07/2/2024 17:16

This is now a stinking pile of cr@p

[watfordhornet] 07/2/2024 16:59

My 1st purchase was at £2.15.Anyone beat that?

[hardupfedup] 07/2/2024 16:58

careful --- ditto

[fuji99] 07/2/2024 16:22

At all time low now since 1995, more than 28 years ago.

[smithless] 07/2/2024 16:12

Best thing that could happen to VOD if it got taken over. Management is out of date. Needs fresh eyes. As a Vodafone customer, my observation of its marketing is something from the 90's. Needs to think out of the box and use its customer base to move into better margin businesses.

[careful] 07/2/2024 16:09

telecoms being crushed just lately.
I bought a few more vod today.
Into bt and vod hoping the falls are exaggerated momentum trades.
My 2024 will be decided by the performance of these shares.

A staggering collapse.

[wllmherk] 07/2/2024 16:03

I'm not convinced cutting the dividend would crash the the SP, it's not helping the share price yielding double digits. Cut the dividend and pay down debt, as someone wiser than me once said, it's difficult to go bankrupt if your debt free.

wllm :)

[wllmherk] 07/2/2024 15:59

Cutting the dividend and reducing debt might see the shares bounce, I agree careful with both your points.

wllm :)

[careful] 07/2/2024 15:39

Sensible to cut the dividend.
What a disaster this share has been.

[davius] 07/2/2024 15:38

But is that up or down hardupfedup?

I think if they cut the dividend 40% as predicted today (see other thread), we'll be lucky not to end up below 50p.

[davius] 07/2/2024 15:32

Is Vodafone about to cut its dividend?

After Q3 results failed to resurrect demand for the shares, one team of City analysts outlines their expectations for the dividend, financial performance and latest price target.

A 40% cut in the Vodafone Group dividend has been forecast as the City prepares for a “more constructive” payout policy alongside May’s annual results.

Vodafone shares currently yield dividend income above 11%, fuelling expectations that a big reduction is in store for the mobile phone giant’s large band of retail investors.

Chief executive Margherita Della Valle will update capital allocation priorities once 4.1 billion euros (£3.5 billion) is banked from the imminent sale of its Spain operations.

The outcome of the review should be the focus of full-year results on 14 May, potentially removing a major source of uncertainty hanging over the stock.

The London market’s one-time biggest company continues to trade at its lowest level in over two decades, despite Della Valle’s restructuring efforts in Spain and Italy and the proposed merger of UK operations with Three owner Hutchison.

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This week’s trading update also showed top-line momentum in several countries in Europe and Africa, but with Voda’s largest market of Germany still under pressure the shares are 7% lower year-to-date and below 65p this afternoon.

Bank of America says forecasting the financial outlook for Vodafone is complex and uncertain given that there are deals at various stages of progress in Spain, UK and Italy.

Its analysis suggests 2025-28 cash flows will be diluted 23% from pre-deal levels at an average 2.2 billion euros (£1.9 billion), below the 2.5 billion (£2.1 billion) current dividend outflow.

The bank said: “Our view is that while a brief period with the dividend uncovered could be considered, a three-to-four-year gap is too long and that Vodafone will choose to rebase the dividend lower to levels that could be guaranteed and used as a base to grow.”

It assumes that a cut of 40% will result in a more secure payout broadly in line with the wider sector and provide Vodafone with a buffer to deleverage.

Such a move would cut the annual dividend from nine euro cents (7.68p) to 5.4 euro cents (4.61p) a share, leading to a yield of 7%.

With the benefit of excess cash flows and disposal proceeds, the company can then consider one billion euros (£850 million) of share buybacks alongside 5% a year dividend growth.

The bank said: “As a 12% total return profile this is not unattractive and is perhaps the best way to see the ‘wood for the trees’ amid the complexity.”

This week’s note highlights a price target of 122p alongside a “buy” recommendation.

The bank added: “Restructuring is complex and Germany faces operational headwinds.

“However, looking through the complexity we envisage a new, more constructive shareholder remuneration policy and portfolio restructuring to provide scale and support better returns, or to exit where there is no route to do so.”

Among other City firms, UBS this week cut its price target by 2p to 98p but still has a “buy” rating. JP Morgan lowered from 88p to 80p with a “neutral”; stance.

[blackhorse23] 07/2/2024 15:31

Over charging fine on the way , estimated 3.8 billion

[hardupfedup] 07/2/2024 15:28

i've said it before but chart looks potential here for a big move, imo --

[gateside] 07/2/2024 15:23

How can a target of 80p be neutral, when the share price is 64p?80p is a 25% gain from the current share price!These broker targets are nuts!

[isis] 07/2/2024 15:13

VOD dividend 12% now - Yikes!

[blackhorse23] 07/2/2024 15:02

Over charging fine on the way , estimated 3.8 billion

[blackhorse23] 07/2/2024 15:02

GNC ready to go double

[vaston] 07/2/2024 14:58

SYME IS NOW READY TO FLY

[isis] 07/2/2024 14:45

Vodafone should list in Frankfurt or the US.

[philanderer] 07/2/2024 14:33

This is a real basket case :-D

[topazfrenzy] 07/2/2024 14:08

30p on the way probably ..

[topazfrenzy] 07/2/2024 14:07

This must be the worst *blue chip* on the planet lol