RE: Brokers' dubious 125p sp targets?!?9 Jan 2019 23:06
Surely the big question is, does vod pay more in interest on its massive debt than it pays for the divi. If vod can borrow money at a lower rate than it pays on its debt, then of course it should continue to borrow money rather than pay off debt &then should continue to pay a high divi, It's basic common sense, If lower profits however increase the interest rate vod pay on there debts then this could be a problem , however this info seems difficult to get. When I ask on this forum, all I ever get is about free cash flow covers the divi , which I think we all realise by now is not the be all & end all, i.e you have to be able to top up the free cash flow with profits otherwise you end up with no cash flow. I think however, profits will top up the free cash flow, so I think vod is a strong buy. All this moaning about m m 's the yanks bent stockbrokers is just a side show nonsense. Of course as a big investor in vodafone I don't like shorters who undermine the true value of the shares but I accept that it is part of the modern life of investing so just stop moaning about it please. If you can't stand the heat, then get out of the kitchen. Try premium bonds!!!