High divi =high8 Aug 2021 18:17
Seeing as I seem to have started this debate, which I think is good, can I just say, Firstly I hold a lot of vod shares, & think they are underpriced. Of course it may be wish full thinking as I am losing money on vod , so I may be chasing my losses? But although I may be deluded in hoping the sp will rise, I am not deluded in thinking that vod has so much spare cash sploshing around (free cash flow) that the divi, does't come straight out of the sp on ex divi day, of course it does, Also I don't understand where licker gets cost of debt 1%, & cost of equity 7%. The cost of debt is a lot higher than 1% & what do you mean by cost of equity 7%? If you refer to the 7% divi, vod are not paying shareholders 7% , they are (as explained earlier) simply giving vod share holders back 7% of there holding per year, of there own money, which comes straight out of the share price. For vod to have 7%,equty the share would need to at least stay the same,(but it has fallen over the years) assuming vod holds the 7%divi. Why do so many on here, just not get that? I don't like to agree with negative comments on here, but I have to accept that they make a lot more sense some times. Lesson. Do not buy shares simply for the divi, as it is not a freeby & comes straight out of the share price. Thank's poker & mole, & some others for your input, negative or positive, But I say, please try & get your facts right to some other posters.