RE: Vod's deb't3 Jan 2024 00:56
Sorry but I think you are missing my point. What I am saying is if vod is paying less in interest % wise than vod shareholders ( who own vod) can get in interest by re investing there divi payments, then that may justify borrowing to pay the divi. Forget charts, bla bla bla, Just maths is what I am talking about. If I could borrow the amount that vod pays in divi per year at a lower % interest rate than I could get by reinvesting it at about 5%, then I would. So if vod is borrowing at less that 5% , then paying a divi from borrowed money could be a good thing. Old school mathematics I guess. If you can borrow at 4% & invest at 5% you can become very rich if you have enough money, as vod does. Thanks fleccy, but you still don't seem to grasp the basic point, do vod pay more % on there debts, than there shareholders make by reinvesting there dividends? No spreadsheet charts please! Common sense answer please . Thank you. I realise of course that vods debt's are very complex, which is probably why we have to leave it to the vod bod accountants, unless you know better?