Vodafone shares

A_Flock_Of_Sheep

There seems to be a bit of a divide on whether VOD is actually a good investment.

But on their official page they pledge to increase the DIV income to 11p per share and to grow this year on year. The total "windfall" package being worth approx 112p per share held. Basically income growth off the back of Project Spring.

Interestingly VOD also has large contracts for mobile comms for many large firms and also government departments.

Thrugelmir

atush wrote: »

And why do you think, after the disposal, they will have 'growing' income prospects? I think they will have falling income prospects.

VOD need to reinvent themselves and broaden their service offerings. Mobile phone operators peaked some years ago.

Of course VOD could in itself become a takeover target. Once divested of VZ.

closed

Argue amongst yourself..

8 months ago, the deal was unexpected and the share price of vodafone was lower, today it's not unexpected, the news is out, the market has a price based on the probability of the deal going through, and the value of the deal. Market value is a notional amount which changes by the fraction of a second.

The op wanted to know if they buy today, can they make a killing, a windfall, a profit, a dead cert, whatever you want to call it. They need to understand how it works before making any risk assessment, which even for professional investors is nothing but a guess.

RetiredInThailand

closed wrote: »

. Re Growth, look at the past share price, flat as a pancake for a decade
https://www.google.com/finance?cid=834331

"Flat as a pancake"? I prefer to see my Vodofone shares as a big gainer, given that I paid on average about 140p each for them at various times in the last few years and they are now worth over 200p. They have paid good dividends also.

Glen_Clark

lvader wrote: »

VZ income isn't VODs income, to grow VODs current income will be very easy since debt will be lower and they are targeting acquisitive growth.

Actually VZ's income has been the mainstay of Vodaphone's income. Why do you think VZ are so keen to buy Vodaphone out?
So 'targeting acquisitive growth' with the stock market close to an all time high is very easy?
Hmmm...
FWIW My thoughts are that there is so much QE funny money flying around looking for a home, that any news that isn't obviously bad draws attention to the company and increases its share price. Hence the rise in Vodaphone's shares. When they have sold the Golden Goose what is left? They have almost no landline network, so are dependant on paying increasingly inflated prices for wireless network licences.

IronWolf

A_Flock_Of_Sheep wrote: »

But on their official page they pledge to increase the DIV income to 11p per share and to grow this year on year. The total "windfall" package being worth approx 112p per share held. Basically income growth off the back of Project Spring.

Companies always say this, right up until they cut the dividend.

VOD's free cash flow is only around £2-4.5bn a year excluding Verizon cash, yet its dividend costs £5bn a year. That isn't sustainable and I'll bet the management will fund it with every increasing debt until the day they become royally screwed and have to start paying down that debt.

Glen_Clark

A_Flock_Of_Sheep wrote: »

To be honest

are you not usually honest

A_Flock_Of_Sheep wrote: »

is £800 enough by the time you factor in fees and SDRT?

SDRT is 0.5% so it is just as much a drag on £8000 as £800

lvader

Glen_Clark wrote: »

Actually VZ's income has been the mainstay of Vodaphone's income. Why do you think VZ are so keen to buy Vodaphone out?
.

Only when VZ chooses to pay a dividend which hasn't always been the case. VZ is now a big company it's only natural that it wants to fully own it's wireless subsiduary.

theGrinch

got in at 130p in 2010. Im happy to let it tick tick tick afterall they are paying me (divs) to hold their share. thats the best way to look at it. get richer slowly.

planteria

closed wrote: »

....if you get a payout, the share price will drop to compensate,....

will it? it won't necessarily..

fwiw i think, and of course hope, that Vodafone can grow the business in Ghana, Turkey, South Africa, India, Albania etc. when they are divested of VW. they are the sorts of markets with potential to continually grow, accepting that there are challenges that come with the potential. Though a huge portion of the profitability has come from VW, 'A European, Asian, Middle East and African telecoms company' could be very successful company and make an appealing investment.