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Android. If your figure of 2.5% is correct, then that is very good justification for paying a very high divi rather than paying off deb't. In the long term of course, vod needs to keep its debt under control. Investing is all about %'s In £'s or billions of £'s .
Sorry but I think you are missing my point. What I am saying is if vod is paying less in interest % wise than vod shareholders ( who own vod) can get in interest by re investing there divi payments, then that may justify borrowing to pay the divi. Forget charts, bla bla bla, Just maths is what I am talking about. If I could borrow the amount that vod pays in divi per year at a lower % interest rate than I could get by reinvesting it at about 5%, then I would. So if vod is borrowing at less that 5% , then paying a divi from borrowed money could be a good thing. Old school mathematics I guess. If you can borrow at 4% & invest at 5% you can become very rich if you have enough money, as vod does. Thanks fleccy, but you still don't seem to grasp the basic point, do vod pay more % on there debts, than there shareholders make by reinvesting there dividends? No spreadsheet charts please! Common sense answer please . Thank you. I realise of course that vods debt's are very complex, which is probably why we have to leave it to the vod bod accountants, unless you know better?
"is that factored into current debt calcs? "
GeoChem
Those bonds no longer exist as they were exchanged for shares, on maturity ....to keep the share total stabilised and thus avoiding dilution...VOD bought back shares using cash ...
Many of those bondholders receiving shares "could" well have sold them, contributing to the share price gradual decline
Just on debt, I recall VOD buying back kerzillion shares over the last two years which weren't cancelled, as I recall, sketchy here on memory, but my reading of the purpose was to cover bonds which could be redeemed with shares. They'd have been better off keeping the cash as they were buying back at £1+ however, is that factored into current debt calcs? Also, they don't pay divi on the treasury shares.... Happy new year all longs
Daniel, if you look at the chart I posted a link to previously you'll see the interest paid and received during FY22/23 was €-1.164 Billion
Daniel the annual average interest paid on the Euro Bonds wont vary, as they're fixed rate Bonds, what may alter are interest payments for Bonds denominated in other currencies, which are also fixed but may alter due to currency fluctuations. When I did my charts I didn't realise that I could do currency conversion in Google sheets, but I've now discovered there's a way to do it; I used a fixed conversion for $ Bonds at conversion rate of 0.92 (currently 0.91) so the Euro values were millions out on current exchange rates, insignificant in the scheme of things but I've just now corrected anyway. Other Bonds in currencies like CHF, HKD, etc were also similarly affected, now corrected.
At H1 update Nov 2023 MDV said she was very pleased at the strength of the VOD balance sheet and said it was 'remarkable'. '...recognising net debt with a very long maturity on average 11.7 years and interest attached to it of c.2.5%....'
Thanks for that, but I still don't know the average A.P.R. vod is paying on it's debt. I will get a divi in Febuary, & will invest it in a savings acccount earning almost 5% A.P.R. so if vod is paying less than 5% average on it's debt it is good to pay a divi, even if it has to borrow to pay it, but if vod is paying over 5% then paying a divi is not so good. It seems strange that this info is not available, so we must just take vods word for it that it is doing right thing?
Just had a quick look at the Bonds outstanding (EU and US) page and can see that $3 Billion of Debt maturing on the 16th of this month has already been removed:
$2bn 3.75% 92857WBH2 $ 2,000,000,000 €1,840,000,000 1,000 3.75 S/A 16/01/2024
$1bn FRN 92857WBN9 $ 1,000,000,000 €920,000,000 1,000 $ LIBOR + 0.99% Quarterly 16/01/2024
Yearly Debt maturity:
https://docs.google.com/spreadsheets/d/e/2PACX-1vSNxkKmgR2PzSL1NH5uvhJAIl6TyUm-PpH2hChEFWELeB8mLB-V562E7qRdDL0lOSa8NyAUBbokBjVp/pubchart?oid=1681133451&format=interactive
If anyone see's any mistakes, let me know and I'll make corrections.
There's around €3.5 Billion maturing this month:
https://docs.google.com/spreadsheets/d/e/2PACX-1vSNxkKmgR2PzSL1NH5uvhJAIl6TyUm-PpH2hChEFWELeB8mLB-V562E7qRdDL0lOSa8NyAUBbokBjVp/pubchart?oid=17624073&format=interactive
In terms of annual interest paid and received on debt, it's currently around €1.1 Billion:
https://docs.google.com/spreadsheets/d/e/2PACX-1vSNxkKmgR2PzSL1NH5uvhJAIl6TyUm-PpH2hChEFWELeB8mLB-V562E7qRdDL0lOSa8NyAUBbokBjVp/pubchart?oid=325944045&format=interactive
To sell VOD has finally broken the 70p mark but for how long? technical indicators have also changed as Investing.com used to have this as a srong sell and now its changed to neutral. I know its not a great change but its still a positive sign that things are changing.
I’m sure I read a post by fleecy saying there is a £2bn bond debt due in twelve months?
Danielh
Click on the pdf links to get the interest rate details
https://investors.vodafone.com/debt-investors/bonds-outstanding-eu-and-us
Fleccy, or anybody else, Do you know what interest rate (on average), Vod pays on it's debts? It seems to me this is crucial in deciding, if vod should pay off deb't, instead of paying a dividend. Thank's for any info on this.
Unite complain about anything and everything.
Nasty bunch of socialists.
Not sure why UNITE is complaining about the dividend. Their pension scheme report it is down nearly 18% because bond values have dropped and bond yields are massively up. I would think a dividend is what the pension scheme needs to fund members pensions?
Vod closing Sp 5th Jan
FredRubble 69.69p
Malkis 70.76p
Added to list Entries Closed Closed
SteveBT ( must of been a great New year, your already on 30th Dec 10.14 , 70.25p )
Atb
70.76 please
Maybe need some integration and operations capex, but not aware of new spectrum requirements. The network will throttle 'excess' usage and in the meantime big data packages widely available to consumers at competitive prices.
The challenge will come when suppliers manufacture data hungry *G products and more than the current actual/ theoretical capacity or the merged entity really does take all the market share off the other operators, unlikely though.
Anyway, €2Bn dividend off €60Bn net assets is a reasonable return on equity surely?
Add VOD’s over 2bn payout and you see both companies and draining capital for short term gain instead of investing for the future.
A merge of two companies hoping the other party does the capex.
Enjoy.
69.69 for me please. Happy New Year to all.
71.25
Vod closing Sp 5th Jan
Newsid 66.4p
Sam 74p
AbjectP 70.1p
Added to list Entries by 12pm Tues