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Probably both. Besides, he certainly already owns or will receive at least as many Vodafone shares based on the incentive plan. To me that means that he really believes in the buyback story.
The CFO has spanked £1.7 M on VOD shares…he is either paid too much or believes in the share buyback story
To the contrary Gutterclown.
For the buybacks to have maximum effect, we want the share price as low as possible.
We know the low SP is only artificial, but for what it is worth, if it could go lower for the buybacks would be ideal.
Nuthin will make this go up agane sadley.
I is loosing all hop.
The previous charts assume stock prices and dividends stay the same over the period, halving the dividend yield, like Vodafone have just done, doubles the catchup time.
The charts aren't meant to be a real world example, they are aimed at demonstrating the power of dividend reinvestment when the price drops.
"Why even be in the FTSE 100 at all with a divi yield below the risk-free rate and no growth stocks"
Actually reinvesting Dividends is an form of growth, especially when P/E's are low and dividend yields high. BT ticks both of those boxes. A while ago I built some charts to show the difference between two Fleccy's in parallel universes, in one Universe the price halved. In Fleccy 1's Universe the price held at £2 after the initial purchase, whereas the price halved in Fleccy2's Universe.
Both Fleccy's bought 50,000 shares for £100,000 at a purchase price of £2 a share, Fleccy2's shares saw a 50% drop in price soon after purchase. Both Fleccy's reinvest their 7.7p a share dividend year after year going forward.
Comparison of share valuation with 7.7p Dividend reinvestment
https://docs.google.com/spreadsheets/d/e/2PACX-1vRYwu6rv7Vk2093vnE9975iJIfiNBDGYW08VmYU2MK2tsi0o9bA3rDwV9NV0XA6QJrkQeqet_jppwWg/pubchart?oid=1399088825&format=interactive
Number of shares held after each reinvestment
https://docs.google.com/spreadsheets/d/e/2PACX-1vRYwu6rv7Vk2093vnE9975iJIfiNBDGYW08VmYU2MK2tsi0o9bA3rDwV9NV0XA6QJrkQeqet_jppwWg/pubchart?oid=933652602&format=interactive
Annual Dividend Growth with each reinvestment
https://docs.google.com/spreadsheets/d/e/2PACX-1vRYwu6rv7Vk2093vnE9975iJIfiNBDGYW08VmYU2MK2tsi0o9bA3rDwV9NV0XA6QJrkQeqet_jppwWg/pubchart?oid=305726335&format=interactive
"The Vodafone share price went up on the news of the Italy sale , dividend cut and buybacks and the CEO is still in place. "
And yet the share price is practically back to where it was before.
"'is selling core business units and doing buybacks.''
Not sure if part of a portfolio not make a profit can be classed as much of a core 'business'. "
Vodafone Spain and Italy were core as much as they were in the same business in those countries as they are in the UK etc. They just couldn't get a decent return in those countries as they struggled to complete, so getting rid was probably better than further managed, or mismanaged, decline.
Pc
''Lower dividends from next year
"next year"...... starts with the H1 dividend for H1 ending 30th September 2024 (this year)''
??
Full year results are not until May - I am expecting a final dividend of 4.5c payable in September
"What pensioner goes from the high risk of investing in a single stock for its dividend yield, to the security of an annuity and loss of capital?"
Why even be in the FTSE 100 at all with a divi yield below the risk-free rate and no growth stocks...There's a reason the index remains so unloved by big money.
Jes
''is selling core business units and doing buybacks.''
Not sure if part of a portfolio not make a profit can be classed as much of a core 'business'.
Vodafone are doing an 'Aviva', who simplified their business by selling off assets, and are now continually purchasing back their own shares. These actions have been a great benefit to shareholders.
''What would happen if Apple or Netflix announced they can't make a profit in Europe so they need to cut back and focus on other markets. There would be a plunge in share price, a change in CEO''
The Vodafone share price went up on the news of the Italy sale , dividend cut and buybacks and the CEO is still in place.
''Like with BT, main hope here is eventual takeover ''
Complete nonsense
The CFO bought 2,500,000 shares !! Does the CEO now need to buy 10,000,000 shares maybe to send this share's price upwards ?!!!!
Wait for the divi funds to start selling. This will settle lower in my view.
And he's the chief financial officer so would know the income potential intimately. A great vote of confidence from Luka Mucic. Now maybe Margherita will buy some too. That would be most welcome. It's definitely comforting to see such a large purchase from an insider.
Volumes very low until now
It knot lookin goode agane sadley.
Culd be tyme to buy moore.
I is stayin on the side line.
Lower dividends from next year
"next year"...... starts with the H1 dividend for H1 ending 30th September 2024 (this year)
they say "next year" meaning their new Financial Year FY25 which begins in April 2024
70p
What pensioner goes from the high risk of investing in a single stock for its dividend yield, to the security of an annuity and loss of capital?
Vod closing Sp 22nd March
George 73.45p
Suiris 72.50p
Shan999 73p
Exil 68p
Curtin 73.1p
Davef 63p
Added to list Entries by 12pm Mon Atb
The lower the sp stays the more of the outstanding shares the company can scoop up. When the elephants in the markets realise the untapped value and ROI, the sp will be well above 100.
Or it could be that telecoms are getting hammered today!... Check BT share price
I do like the way they snuck in the inevitable div cut under the guise of a capital allocation program. It’s so 2018.
Any pensioners out there using this for income do the calculations in selling up and converting to annuity. Getting quoted 6.6% at the mo.
Not financial advice of course.
Is it being pushed down this week because they know Friday is a going to be a good news day?
https://www.gov.uk/cma-cases/vodafone-slash-ck-hutchison-jv-merger-inquiry
Capital allocation review
Vodafone has conducted a broad capital allocation review, considering the investment profile of the Group's strategy within its reshaped footprint. This review has concluded the following key outcomes:
· country-level capital intensity to be broadly maintained at existing levels;
· maintain robust balance sheet with new leverage policy of 2.25x - 2.75x Net debt to Adjusted EBITDAaL, targeting to be in bottom half of the range;
· FY24 total ordinary dividend expected to be maintained at 9.0c per share and ordinary dividend to be rebased to 4.5c per share from FY25 onwards;
· targeting total return increase to ?3.1 billion for FY25, comprising ?1.1 billion ordinary dividends and up to ?2.0 billion share buybacks following completion of the sale of Vodafone Spain; and
· opportunity for further share buybacks of up to ?2.0 billion following completion of the sale of Vodafone Italy.
The total net cash proceeds from the sale of Vodafone Spain and Vodafone Italy are expected to be approximately ?12 billion, subject to customary closing adjustments. Following an extensive review of our capital investment requirements, the current capital intensity will be broadly maintained by market, which allows for appropriate investment in networks and growth opportunities. A new leverage policy of 2.25x - 2.75x Net Debt to Adjusted EBITDAaL will be adopted and we will target to operate within the bottom half of this range. The new leverage policy supports a solid investment grade credit rating and positions Vodafone to continue to invest for growth over the long-term. Vodafone has a debt structure with a weighted average life of 12 years, and fixed weighted average cost below 3%.
Reflecting the composition of the Group for FY24, alongside re-iterating FY243,4 guidance of Adjusted EBITDAaL of c.?13.3 billion and Adjusted Free Cash Flow of c. ?3.3 billion, the Board's intention is to maintain the final FY24 dividend in line with the prior year at 4.5c per share (annual total dividend: 9.0c per share). Following the right-sizing of the portfolio as a result of the Transaction and the sale of Vodafone Spain, the Board has determined to adopt a new rebased dividend from FY25 onwards. The Board is targeting a dividend of 4.5c per share for FY25, with an ambition to grow it over time. The new dividend has been set at a sustainable level, which ensures appropriate cash flow cover and sufficient flexibility to invest in the business for growth.
The Board has approved the capital return through share buybacks of up to ?2.0 billion of proceeds from the sale of Vodafone Spain. This is expected to commence following completion of the sale of Vodafone Spain. The Board anticipates the opportunity for further share buybacks of up to ?2.0 billion upon completion of the sale of Vodafone Italy. It is expected that the total return to shareholders for FY25 will be up to ?3.1 billion, representing ?1.1 billion in ordinary dividen