Vodaphone shares

TUVOK

I would welcome comments on the above share.
I have over a number of years built up a substantial (to me!) holding in Vodaphone
Although the share dividend is welcome, it has come with a large reduction in the share price.
The question is whether with the new management in place, to hold and hope for an increase in share value, or is it time to "bite the bullet" and either reduce or sell all of my holding?
Thanks for any/all comments.

Thrugelmir

Holding a single share is never advisable. Diversification is a core foundation of any portfolio. As you've learnt firsthand.

Dividend has been cut by 40% for the last financial year. Any upside is purely down to the dividend being declared in US$ over the past few years. A fall in the £ - $ exchange rate being beneficial.

Personally I would retain a holding in VOD while giving thought to how this fits in with your overall savings/pension etc.

steampowered

What has happened to the share price in the past is not relevant, from a pure economic perspective.

The value of 1 share bought 10 years ago is the same as 1 share bought yesterday - its the same share.

Personally I would diversify.

capital0ne

It's Vodafone - bit pedantic I know!

tin586

It’s one I have looked at. Even with the dividend cut, the dividend is quite reasonable.

However, it’s the debt that worries me and this is set to increase with its acquisition of the Liberty Global assets.

So I’m passing for the time being.

In fact, I’m hoping Liberty Global will use its cash from the Vodafone sale to buy out ITV (interest declared!).

NedS

If you didn't own any shares in Vodafone, would you buy Vodafone shares today at their current price? If the answer to that question is no, then you should sell your shares and invest in something you do want to buy/own. Simple.

bowlhead99

NedS wrote: »

If you didn't own any shares in Vodafone, would you buy Vodafone shares today at their current price? If the answer to that question is no, then you should sell your shares and invest in something you do want to buy/own. Simple.

This is a pretty decent and standard way to assess how much you like your holdings, and can be broader than just Voda shares. Imagine you had just accidentally sold everything in your entire portfolio and the equivalent cash value arrived in your investment accounts. Oops.

Assuming you're not the type to take the cash and spend it down the pub, you should probably redeploy it into an investment portfolio. But how would you rebuild that investment portfolio from nothing? How many Voda shares should be bought? You could make a good case for hundreds of thousands of combinations of investment assets that didn't include any directly held Voda shares at all.

Moe_The_Bartender

Vodafone is nothing more than a boring utility nowadays that has nothing better to do than slowly liquidate itself by giving shareholders some of their money back in the form of dividends.

As others have said - would you buy it today? If not, get rid. I wouldn’t buy it under any circumstances.

thickasabrick

Not specific to Vodafone but the phrase "Dividends and high returns on capital are not a cure-all if the business itself is 'sick' ".
Quote from this case study by Mr Tako "Lessons On Investing: Kraft-Heinz"

Quite like the Simply Wall St visual analysis tools for looking at individual stocks. Interestingly it thinks that it is > 50% undervalued.
"compared to fair value VOD (£1.58) is trading below our estimate of fair value (£3.62). "

Personally, just looking at the "Debt to Equity History and Analysis" does not inspire much confidence in me.
https://simplywall.st/stocks/gb/telecom/lse-vod/vodafone-group-shares?r=/user/profile#health
Although it does go on to predict that dividends will continue to be paid out from earnings...

TUVOK wrote: »

I would welcome comments on the above share.
I have over a number of years built up a substantial (to me!) holding in Vodaphone
Although the share dividend is welcome, it has come with a large reduction in the share price.
The question is whether with the new management in place, to hold and hope for an increase in share value, or is it time to "bite the bullet" and either reduce or sell all of my holding?
Thanks for any/all comments.

EdGasketTheSecond

Directors have been net buyers which is a good sign. The CEO bought £350K's worth at 153p on 29 Jul; other directors earlier this year. I'd say buy/hold for now for 200p +