Vodafone Shares

Are Vodafone Shares worth buying now they are below £1.50 and a dividend of almost 9% any reason for the heavy price drop ?

Comments

  • geeovana
    geeovana Posts: 91 Forumite
    Interesting question.


    I bought back at £2.07 because I thought I would buy in the dip and the dividend was 7% ish. 25% down and counting as of today.


    Only company in my portfolio. Never again.
  • geeovana
    geeovana Posts: 91 Forumite
    Talk by analysts of the dividend being cut as well.
  • Wobblydeb
    Wobblydeb Posts: 1,046
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    They are that price because everyone expects the dividend to be cut. If you buy, you would be making a gamble that the dividend cut is less than the experienced brokers and investors expect it to be....

    You could be correct, and make a good profit.

    Or the price could drop further, wiping out whatever dividend they do pay.
    I've got a plan so cunning you could put a tail on it and call it a weasel.
  • Alexland
    Alexland Posts: 9,653
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    They strike me as a pretty mediocre company who haven't obviously achieved anything recently and have below average future prospects. Remember when investing you are buying a business not just historic yield.

    Alex
  • _CC_
    _CC_ Posts: 362 Forumite
    The time to buy Vodafone was a few years back prior to their Verizon Wireless sale. It was clearly undervalued in relation to its assets. Wouldn't buy today.
  • Xbigman
    Xbigman Posts: 3,884
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    VODs dividend is uncovered. That means they pay more out in dividends than they make in profits, a situation that can't go on. They need to cut the dividend to a sustainable level, probably by about half. It's possible this is now fully priced into the share price but who knows.
    I'm not a holder and not buying anytime soon.




    Darren
    Xbigman's guide to a happy life.

    Eat properly
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  • The dividend yield % is based on the last payment over today's price so is really a worthless calculation. Fully expect a sizable dividend cut.


    I have a few investments but VOD is not one of them.
    Thinking critically since 1996....
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