Vodafone shares - any good?

2456

Comments

  • Linton
    Linton Posts: 17,061
    Name Dropper First Post First Anniversary Hung up my suit!
    Forumite
    Thrugelmir wrote: »
    An income stream that's under pressure in Europe. Appears now to be the new BP. One day in the future VOD will have a disaster of its own.


    Possibly, but most companies are under competition pressure. And of course Vodafone isnt just big in the UK and Europe. I believe that globally its the largest company in its field and its the only significant mobile communications company you can invest in on the FTSE, and that's the FTSE AllShare.

    But yes any one company is a risk, that's why in my view the OP should be aiming towards say 15-20 income shares, or alternatively a small number of funds.
  • Thrugelmir
    Thrugelmir Posts: 89,546
    Name Dropper Photogenic First Anniversary First Post
    Forumite
    Linton wrote: »
    But yes any one company is a risk, that's why in my view the OP should be aiming towards say 15-20 income shares, or alternatively a small number of funds.

    The issue with Vodaphone for me is that its being chased for income.

    Given that's its annual dividend payments amount to twice the amount paid by the entire FTSE 250 in total. Shows the over reliance on the stock.

    Personally I'm a buy and hold investor. Using dividends reinvestment to diversify my portfolio. First bought BP at 121p so lived through its rise and fall in its entirety.
  • melbury
    melbury Posts: 13,250
    Name Dropper First Anniversary First Post I've been Money Tipped!
    Forumite
    Linton wrote: »
    An Investment Trust worth considering is City of London which has the proud boast that it has consistently increased its dividend for the past 40 years or so.

    Don't you have to pay quite high charges for the management of an investment trust?
    Stopped smoking 27/12/2007, but could start again at any time :eek:

  • jimjames
    jimjames Posts: 17,532
    Photogenic Name Dropper First Anniversary First Post
    Forumite
    melbury wrote: »
    Don't you have to pay quite high charges for the management of an investment trust?

    Depends on the trust but generally no more so than a unit trust and in some cases substantially less.
    Remember the saying: if it looks too good to be true it almost certainly is.
  • Linton
    Linton Posts: 17,061
    Name Dropper First Post First Anniversary Hung up my suit!
    Forumite
    melbury wrote: »
    Don't you have to pay quite high charges for the management of an investment trust?

    Note that performance figures, dividends etc are after charges they arent a bill you pay directly. So if, as in this case, the performance meets ones requirements paying the charges is worthwhile.
  • melbury
    melbury Posts: 13,250
    Name Dropper First Anniversary First Post I've been Money Tipped!
    Forumite
    Linton wrote: »
    Note that performance figures, dividends etc are after charges they arent a bill you pay directly. So if, as in this case, the performance meets ones requirements paying the charges is worthwhile.

    I only found out yesterday that the shares I have in an investment trust, which has changed management company a couple of times, incur a charge of £12 per quarter.

    I only realized this because they sent me a transaction advice with the last valuation, which showed some money for me from a lapsed rights issue and nearly all of it has gone in the charges. Man said that there is enough left to cover the next year. Seems quite high to me, perhaps it is better if you do just see it as a final figure.
    Stopped smoking 27/12/2007, but could start again at any time :eek:

  • melbury wrote: »
    I only found out yesterday that the shares I have in an investment trust, which has changed management company a couple of times, incur a charge of £12 per quarter.

    that sounds like a £12 charge for the nominee account in which you're holding the shares, not something that everybody who holds the shares will be paying.

    you can buy investment trusts either in the same way as any other shares, or through a specific account provided by the management company (if they provide 1). some of these accounts for buying investment trusts are good value, but this 1 sounds expensive (unless you have quite a large value of shares in it).

    if you are just holding your shares, and not adding to them via regular investments, you could ask if they'd transfer your shares into certificated form in your own name, and close the account. this would mean no more quarterly charge. they'd almost certainly charge to for the transfer, but that would be a 1-off charge, so might be worth it.
  • Linton
    Linton Posts: 17,061
    Name Dropper First Post First Anniversary Hung up my suit!
    Forumite
    melbury wrote: »
    I only found out yesterday that the shares I have in an investment trust, which has changed management company a couple of times, incur a charge of £12 per quarter.

    I only realized this because they sent me a transaction advice with the last valuation, which showed some money for me from a lapsed rights issue and nearly all of it has gone in the charges. Man said that there is enough left to cover the next year. Seems quite high to me, perhaps it is better if you do just see it as a final figure.


    You may be confusing two separate things. The charges made by an investment trust are to cover its own internal expenses. These charges are included within the share price. However if you hold the IT shares, or any other shares, through a broker then the broker will have a charge to cover their expenses in holding your shares. These are taken out of your account as cash and are nothing to do with specific shares you hold.
  • melbury
    melbury Posts: 13,250
    Name Dropper First Anniversary First Post I've been Money Tipped!
    Forumite
    edited 10 November 2012 at 5:20PM
    Linton wrote: »
    You may be confusing two separate things. The charges made by an investment trust are to cover its own internal expenses. These charges are included within the share price. However if you hold the IT shares, or any other shares, through a broker then the broker will have a charge to cover their expenses in holding your shares. These are taken out of your account as cash and are nothing to do with specific shares you hold.

    Well when I first started investing it was Finsbury Asset Management Limited, then it went to Close and it is now Alliance Trust.

    Must say I have never thought about just getting the certificate myself; mainly because I never thought about charges:o

    So if I just telephone them and say I would like to have my shares on a certificate and sent to me, presumably they would agree to this - obviously for a charge.

    Think that would be the most sensible thing to do. Thanks for the advice, I should have done that years ago. I forget that investment trusts are just like any other shares.

    They don't seem to pay any dividends! At the height of the tech shares boom they were worth double what they are now.

    Forgot to say, they are in an ISA, would that make any difference?
    Stopped smoking 27/12/2007, but could start again at any time :eek:

  • Glen_Clark
    Glen_Clark Posts: 4,397 Forumite
    “It is difficult to get a man to understand something, when his salary depends on his not understanding it.” --Upton Sinclair
This discussion has been closed.
Meet your Ambassadors

Categories

  • All Categories
  • 342.4K Banking & Borrowing
  • 249.9K Reduce Debt & Boost Income
  • 449.4K Spending & Discounts
  • 234.6K Work, Benefits & Business
  • 607K Mortgages, Homes & Bills
  • 172.8K Life & Family
  • 247.4K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 15.8K Discuss & Feedback
  • 15.1K Coronavirus Support Boards