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Fell to my expected price thereabouts....I really don't know where we go from here but suppose we have a dividend which is safe...for the moment!!
“ Fell to my expected price thereabouts....I really don't know where we go from here but suppose we have a dividend which is safe...for the moment!!”
Just a reminder the div is not safe if it comes with a corresponding decline in capital, the Sp.
Investors should consider the safety of total returns, from any investment. Too much risk of greater declines here with Wunderkid Germany now shrinking.
'Just a reminder the div is not safe if it comes with a corresponding decline in capital, the Sp.'
SP is back where it went ex div on 24 Nov....lets see when it goes cum div on Friday.
Germany economy will turnaround and VOD will ride up tracking GDP. UK doing really well and Africa a'resilient' hedge imo
why would the divi NOT BE SAFE it only costs vodafone £215 million per annum???
no it costs 2400 million
It’s over €2bn not million, and it’s not safe as they borrow to pay it. New ceo may can it and you have the danger of losing capital value.
sorry made small mistake with my maths
That’s ok. Check out accumulated losses on the balance sheet. That is where divi payments get booked. Loss of 122bn and growing. Doesn’t seem sustainable to me.
Cant see where that €122Bn comes from?
FY22 Total Assets €154Bn = Total Equity and Liabilities €154Bn
Market Cap c€25Bn
8.33% div to compensate for risk vs building society etc
IT's a good idea to download and read the balance sheet of your chosen investment. The Equity section tells the investor what they own. Currently €122.5bn of losses have been accumulated.
It comes from trading losses over the years and payouts to investors (divs and buybacks), so tells you they have never generated the excess to be paying out to investors, so have in reality had to borrow the money to do it.
You can see the movements in the consolidated statement of changes in equity section, usually just after the balance sheet.
"Currently €122.5bn of losses have been accumulated.
It comes from trading losses over the years and payouts to investors (divs and buybacks), so tells you they have never generated the excess to be paying out to investors, so have in reality had to borrow the money to do it."
A tax loss carryover is a way for companies to reduce their tax bill, all Telecom companies carry debt for varying reasons. You're being very naughty Mr Mole.
https://www.youtube.com/watch?v=TvsUCkRGdTk
I'm glad mole_man isn't my accountant
Have you read the balance sheet?
No course not, I thought I'd just pick it from the experts of forum and message boards lol
"Have you read the balance sheet?"
Ok I've just taken a quick look at the Annual report and I can see the Accumulated losses Row in the Equity calculation, and I can see the loss has increased since last year, reducing Equity, but I don't understand the point you're making? It doesn't mean the Equity wont increase next year, or in subsequent years. If Vodafone stop the dividend, which I half expect they will, it just means the dividend will go into debt reduction and still benefit shareholders, just in a different way.
A very high risk putting too much of your hard earned money into this disappointing share i think, definitely wouldn't want to risk too much here, seems like Mikey has been right all along, sorry but think there's better places to put your money, a possible dividend cut here would push this back even more
just my opinion, each to his own
"A very high risk putting too much of your hard earned money into this disappointing share i think, definitely wouldn't want to risk too much here, seems like Mikey has been right all along"
Where are the risks Rob? The worst I'd expect is a dividend cut and that would likely support the share price, since the market's priced a cut in anyway. For someone looking for a relatively safe capital gain, Vodafone would be a no brainer at these prices. Personally I prefer to invest in Dividend stocks, but I'd just continue to hold if Vodafone cut the dividend.
Hi fleccy, where's the risk? well let me think back over the last 5 years, this has gone from bad to worse definitely not seen any capital gains here have you, ok i know you will say you have had a good dividend income here, but you can get that elsewhere without loss of capital ? currently 91.18 and it could get even worse, sorry mate but i think there's better places to invest than this share and if the dividend is cut it could be a long journey getting back over a £1, even Lloyds is looking good right now
"currently 91.18 and it could get even worse, sorry mate but i think there's better places to invest than this share and if the dividend is cut it could be a long journey getting back over a £1, even Lloyds is looking good right now"
I already own over 400,000 Lloyds shares, are you implying there's something wrong with Lloyds? At some point, like Lloyds, the Vodafone share price will start the road to price recovery. As far as Vodafone dropping the dividend, I'd expect an initial market shake out dip, but the price will soon start climbing from there and take out £1 in short order. Vodafone isn't in any distress, the market would soon rerate the stock if Vod signaled a significant debt reduction strategy. A lot is made of Vod's debt, but little mention of last year's €45.58 billion Revenue and €5.4 billion free cash flow. Reading some of the posts, on here, you'd think Vodafone is on the verge of going bust, which it clearly isn't.
That's quite the engulfing candle over at BT...Shame my Tele allocation is 70/30 between the two in favour of vod.
'That's quite the engulfing candle over at BT'
Never mind. Tomorrow we get just under 3.96p cash dividend per share to spend on fast women and cars or reinvest in VOD. Whats not to like?
Spend on fast women it is :)
Not me, I started adding post XD...I'm going to have to wait until the summer for my dividend fuelled decadent cocaine orgy.
Hopefully they'll be some decent capital appreciation enroute too
This piqued my interest as companies can only pay dividends out of positive distributable reserves not share capital or premium. Vodafone can pay dividends because it has a massive merger reserve created (on the Mannesman acquisition mostly) pre 2004 which is hidden in additional paid in capital. What seems to have happened is that subsequently the massive goodwill and other write offs from these acquisitions went through the profit and loss account creating the massive deficit you can see today in the b/f figures.
As ever with shares its what happens in the future that counts not historic nuances of merger accounting from 20 years ago.
robleo. The day Mikey has got it right all along, is the time for us all to give up.