Vodafone Shares
ps2659
Posts: 530
Forumite
Are Vodafone Shares worth buying now they are below £1.50 and a dividend of almost 9% any reason for the heavy price drop ?
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Comments
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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.0 -
Talk by analysts of the dividend being cut as well.0
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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.0 -
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.
Alex0 -
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.0
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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.
DarrenXbigman's guide to a happy life.
Eat properly
Sleep properly
Save some money0 -
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....0
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