REX.L Share News (REX)

(ShareCast News) - Vodafone´s upcoming full-year figures should dispel investors´ doubts about the sustainability of its dividend policy and the high rating accorded to its shares, The Daily Telegraph´s Questor team said.Some observers fret that the shares current price-to-earnings multiple of 40 times forecast earnings is too rich while earnings per share of 5p barely cover a dividend payout of 11.4p per share.Indeed, such a rating can only be justified if the company grows quickly in coming years.The good news on that front is the number of people using its money transfer service at the end of April was up by 27% on year ago levels.Furthermore, the bulk of capital spending linked to its 'Project Spring' was now past, Questor explained.Together with the possibility of a takeover bid materialising means that rating is warranted.'Buy', Questor says. The asset disposals unveiled by Rexam and Ball should have removed the last obstacle to their tie-up in summer, although it remains to be seen what US competition authorities will ask for in exchange for letting the dela go through, The Times´s Tempus said.Had it not been for the 12 plants European officials asked the two companies to hive-off, then the combined outfit would have had 60% of the US market and nearly 70% of Europe´s.Shareholders in Rexam will receive 19% of the new firm, although they can opt for a mix-and-match option for cash.Some investors might be reluctant to owning a US stock, but at 19 times´ this year´s profits the shares are "not toppy for a US-quoted company".If one adds to that the $300m-plus of savings on offer following the merger, even after the disposals, then the shares were worth holding onto, the tipster said."The deal is as good as done, the disposals required are being handled quickly and efficiently and the merged business has good prospects."