Charles Jillings, CEO of Utilico, energized by strong economic momentum across Latin America. Watch the video here.
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Velo
I suspect the share buyback will be the initial priority to stop diluting the shareholders and effectively reduce debt. I know they dont classify this as debt and Im not sure how strategic this is should there be further headwinds or targets not being met. They have done it this way for a reason , mainly to keep it of the debt books but I suspect there are secondary reasons a bit like an insurance policy.
As for progressive, they could, if the plan is on track, increase by tiny amounts to answer this but I cant see the rush to make increases when the debt needs to be brought down. I suspect they might come up with reasons, quite valid ones, not to instigate any increase. If fact in some ways Im surprised the the divi cut was only 40%.
Vodafone IDEA down 19% today !!!
Dan "Sorry Gerry, Are you seriously saying, vod will in future pay a 50/50 interim/final divi.(almost unheard of)"
++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++
No Im not saying that, Vodafone are. Its their current policy in the latest report!
Divi's
Food for thought:
The dividend is progressive, right? I take that to mean if net profits are up and good, the company will progessively pay out a good dividend
- where the Co. can afford to, it will.
At H1, VOD has declared not net profit - but a net LOSS.
I'd say a lower divi award, favours the doubters. Think about it. The H1 is a net loss which means all divis paid out just make it more difficult to pay down the debt mountain, and act as an uneccesary drain on the FCFlow.
Last year was an €8b loss, yet dividends were still paid out, can't renember how much - but a year or so back I posted and listed each year up, is it $3b or thereabouts for divis per year on average? Whatever, last year was an €8b loss + divis of €3b and that's circa €11b to come straight out of free cashflow but ultimately it will not help tackle the debt mountain. (Just checked last year's divi paymts were €4b! )
If you were in Reid's shoes and reported an €8b loss last year and reported a H1 loss for this half year, would it be wise to tie your hands in tackling the debt pile by dishing out a generous dividend? Particularily if you've announced to the world that dividends are now progressive, which means if the Co. can it will, but with losses reported - yet again, can it really be prudent to "overpay" because of historic reputation when it comes to dividends?
PPS. Waiting for my subsciption data packages to update VOD in the coming days will then have a better idea of how well Free Cash Flow is doing now the increased debt is shunting through the books. Should be able to ammorotise the debt over many years, which could help paying divis, but consider this:
3 of the last 4 years have been stonking great losses. Only 1 year out of the last 4 actually made a net profit. It's what proved to be the decider in the angry debates on here over the dividends that raged on here in 2018. It had to be cut! Had to.
With a mega debt on the books a more prudent and cautionery dividend outlook should be welcomed and cultivated.
Sorry Gerry, Are you seriously saying, vod will in future pay a 50/50 interim/final divi.(almost unheard of) Sorry, but I can't see that?! Never mind, only time will tell I guess??!
Dividend policy
The Board intends to have a progressive dividend policy, and the decision on the level of dividend growth will be assessed annually at year-end. Going forwards, the interim dividend is expected to be 50% of the prior full year dividend. Consistent with this approach, the interim dividend for H1 FY20 has therefore been set at 4.50 eurocents.
I see it as it will still be 9 cents, split 50/50, with a rise the following year to be progressive.
D
'' I am talking about the FY20 total divi, which I predict should be 13.5 cent''
By the way they have stated it they will have a policy of having an interim dividend at a level representing 50% of the previous years total. Total for 2020 if they have a progressive dividend policy would come in above the 2019 9c total. I cannot see a 2020 total of 13.5 being paid as that wouldn't be far off the highest yearly payment of 15.07 which wouldn't be much of a rebasing of the dividend. What I think we can safely say is that the total will be 9c +.
H-hi, So now I am unfiltered, I shall be looking very closely at your every post?! But seriously, I am a big fan of Nick Read, so no nasty Nick comments please!! On wards, & upwards.
Final divi must be more than 4.5 cents, still positive if not double. I’ll take 1.5x interim which is possible after positive outlook by NR.
The 4.5 cent interim divi is 50% of the FY19 total divi of 9.cent, but I am talking about the FY20 total divi, which I predict should be 13.5 cent, so the the final being 9 cent. The normal 2 times the interim. Of course vod can do what ever it wants, so who knows. But when it says 50% of FY19 it doesn't mean 50% of FY20 !!