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"The whole concern is that VOD can't actually afford the decent dividend. It has borrowed to pay it since day 1, hence the enormous accumulated losses."
Since they're paying the dividend suggests they can afford to pay it. If they couldn't afford the dividend, i'm pretty sure Read would drop it since he is a Fellow Chartered Management Accountant and a Chartered Global Management Accountant, with a BA (Hons) in Accounting and Finance.
That’s a fair point but one of the first significant things Read did was to cut the divi’ by 40% to make it more sustainable and help fund 5G investment. As the former head of finance at VOD he should be well placed to determine what a sustainable divi’ is. Obviously, should he declare a further cut it’s curtains for him.
Baffling how people disregard hyper inflationary's impact on debt. I was expecting that least the average user here understood that in an inflationary environment, those who borrow to acquire assets at a fixed rate are the winners - cash is trash.
Based on the current market environment, you can bet your house that VODs revenues will be increasing in line and above the inflation rate of ca 8% whenever they reprice contacts etc. So rather naive to imply that debt levels are hurting the business, which it clearly isn't. Its the business model of the telcos. Heavy capex is part of the game.
The whole concern is that VOD can't actually afford the decent dividend. It has borrowed to pay it since day 1, hence the enormous accumulated losses. Divs are posted to the accumulated losses account in changes in equity.
The biggest ongoing impediment to a revival in the SP is VOD’s enormous debt but people should remember that Nick Read ‘inherited’ this from his predecessor Vittorio Collao and has managed to reduce it significantly in the past three years. Another inherited problem for Read has been India where the punitive actions of the Government there resulted in a major write down. Read is doing a decent job imho although I appreciate the angst of investors who are chasing an SP increase as opposed to just being happy with a decent divi’.
thank you fleccy ..gl & atb
thank you fleccy...atb.
"fleccy ive got ex div 16th june....pay date 29th of july.......dont understand your dates"
My dates were pasted straight out of the Chief Executive Statement.
https://investors.vodafone.com/sites/vodafone-ir/files/2022-05/FY22-Press-release-Final.pdf
"Total dividends per share are 9.0 eurocents (FY21: 9.0 eurocents), including a final dividend per share of 4.5 eurocents. The ex-dividend date for the final dividend is 1 June 2022 for ordinary shareholders, the record date is 6 June 2022 and the dividend is payable on 5 August 2022"
fleccy what divi dates you got ive got 16th june x div pay date 29th july ...couldnt understand your post on other thread tia
I was going to reinvest my Lloyds dividend back into Lloyds, but I'm now thinking VOD might be a better choice, especially since I'll get some discount on the purchase price from the upcoming dividend.
Dividend needs to be reduced to start to clear debt...
fleccy ive got ex div 16th june....pay date 29th of july.......dont understand your dates
Ironically, a low share price helps Vodafone in relation to the MCB buybacks.
BT down aswell. Telecom stocks valuations have been depressed by the markets for years, defying all logic in my opinion. I don't see any valid reason for the share price perfomances, over the years, but I believe the sector will see stunning price performance within the next 8 years, I don't know when the turn in performance will start though.
I found with VOD to only look at the balance sheet. Equity down despite an apparent accounting profit. Accumulated losses up due essentially to divi coming from equity (debt). Just reasons why the market will not be that impressed.
looks like 100p on the cards
Well didnt expect that open - I suppose we should though its vodafone !!!!!!!
Very much steady as she goes results. At the bottom end of revised guidance. Dividend seems safe but no chance of an increase either. Forward guidance is pretty much flat. As I suspected, the growth in revenue is going to get eaten up by rising costs.
Might very well see a relief raleigh, but I’m still concerned about how yield decompression could effect the price over the medium term with rising interest rates
"When is the divi?"
"Total dividends per share are 9.0 eurocents (FY21: 9.0 eurocents), including a final dividend per share of 4.5 eurocents. The ex-dividend date for the final dividend is 1 June 2022 for ordinary shareholders, the record date is 6 June 2022 and the dividend is payable on 5 August 2022"
Good to get a PE ratio that means something- by my calculations we are on 19.44 based on basic EPS of £0.062.
Headlines were good but delve deeper and flat prospects for 2023 and rising debt will not ignite confidence
The increased debt was already known & priced in but is very possitive now however the dividend is easily covered by Adjusted basic earnings per share. There is a sound strategy for debt reduction with M&A i.e Vod & 3 merger in UK rumoured to be funded by equity swap rather than new borrowing. These kind of deals will make the debt easily serviceable. GLA
"debt is up not great"
With the share price being so low, the share buybacks were the obvious choice to prevent dilution. Any extra shares, that would have been created to satisfy MCB's, would have meant more dividend costs going forward.
"Net debt at 31 March 2022 was €41.6 billion, compared to €40.5 billion as at 31 March 2021. Net debt increased by €1.1 billion due to share buybacks of €2.0 billion (1,441 million shares) used to offset dilution linked to mandatory
convertible bonds, partially offset by Free cash flow of €3.3 billion less equity dividends paid of €2.5 billion."
Ex divi 16/06
Pretty good overall.
When is the divi?
Big historic problem here is the huge debt, and it's going up!!??