RE: Baffled!!31 Oct 2021 12:24
Paul. Divi cover. I think the point here is the divi is covered by free cash flow, but not by earnings. They are very different I believe, although I stand to be corrected? As for deb't, I think the most important thing is the % interest they have to pay on the deb't & in vod's case this is quite complicated. If vod borrows, but can get a higher return by investing it than the interest paid on it, then that could be good, but vice/versa, then very bad. Don't confuse vod's return % though with the 7% divi yield,as some on here do, they are completely different.