The next focusIR Investor Webinar takes places on 14th May with guest speakers from Blue Whale Growth Fund, Taseko Mines, Kavango Resources and CQS Natural Resources fund. Please register here.
As the SP has fallen by about £1 a share over the last 12 months,
I'm unsure why so many are focussed on the level of dividend.
Does no one question the real price being paid for that income?,
look closely, it's very costly.
In fairness you should not need to look that closely, as the SP erosion is
akin to being hit by a truck.
Comments such as ..I'm going to keep buying Vodafone shares until XYZ...etc
The more of a single holding you accumulate, the greater the risk.
There are UKX stocks which raise dividends year after year. I've mentioned ULVR recently,
one dividend cut ever, from memory.
Some PI's appear transfixed by the yield and forget to look at total
shareholder return. That can be incredibly costly longer term imv.
It's also worth focussing on total shareholder return,
many get transfixed by the dividend, and it can be costly.
As one example - look at the 10, 15, 20 years returns achieved by ULVR re
VOD, CNA or Lloyds over the same timeframes.
Yet ULVR never really looks cheap, but cheap does not always equate to value.
Was that not his job as FD?.
In terms of any tower sale, that would increase annual operating costs,
it would be a type of dale and leaseback transaction.
It's not just here's X billion and that's it - VOD would then need to pay an annual cost of usage.
Ok, first this is just my guesstimating, nothing more, so imv only-
It looks to me as if we are moving in to a new lower trading range,
1.10-1.30 approx -There may be short conference trend moves.
I see little to stop declines towards the lower end of that range,
particularly if macro trends continue to weaken.
It all paints an ugly picture.
In investments I often look to take contra sentiment positions, particularly against
prevailing bearishness, extreme caution. However, for now see little in the way
of any convincing buy case for VOD. Please DYOR.
Yes I agree with that, to a large extent.
However, they don't need to stay with VOD.
And come the next recession, customers are more likely
to upgrade less, look to make savings on their existing mobile contracts.
Hi Longish, they've already revised the dividend policy since that
statement, so I'm less than convinced re debt metrics.
As mentioned earlier, if we were in the depths of recession and the
payment was just about covered, I would be far more positive.
However, we are at the back end of a decade long economic expansion.
The couple of chunky director sells last year turned out to be rather well timed.
Flagged them up at the time.
Slowing growth across the EU, including political uncertainty amid
growing populism.
Intensive competition from new low cost sector entrants.
Spectrum spend and the looming cost of 5g..
Indian business.
Incumbered with high net debt and the dividend only juxt covered,
where does any debt reduction come from?.
So when posters express surprise or bewilderment at the current SP,
I'm wondering are they looking at the same company.
I made the same points 12 months ago here, before the crowd turned up and the waterfall
declines began. Gave VOD multiple string sells. I'm not clicking sell at these levels.
So would someone like to make a strong buy case, including how VOD will reduce their debt pile?.
Indeed, it's just covered atm.
This is at a time of record employment and still (just) expanding economies.
Following a her 10 year economic expansion.
If it was just covered in the depths for a recession, you might take a more sanguine view.
You are arguably paying a significant price for the current payout
while the market doubts sustainability. The price is paid in SP underpormance.
Would it not be better just to cut by 40-50% and then rebuild the payout over time,
cash flow allowing.
Appears to be facing increased cost pressures from a newly unionised workforce
Which will reduce their cost difference re competition.
And the logic follows that many passengers choose RYA on cost metrics.
However, that does not appear to be what RYA say.
They reference Increasing cost differential re competition.
Those views can't both be accurate?, So which is valid -
Appreciate it's a large multi country business.
The most bearish read on last week's update is ..if RYA are
Indeed so cost competitive, why are their fares Down another 7%?.
Yes there is sector overcapacity, even allowing for this, it's a sharp drop
to attract customers.
All always just some random thoughts of mine, only.