Member Info for longtimeinvestor

Nigel Farage has had an interview with Donald trump, to be broadcast at 7pm today on GB News. The establishment/ofcom/other broadcasters are not liking the increasing popularity of

GB News.

Rob

''i suspect it will be of no benefit whatsoever''

it is a 4 Billion euro benefit to shareholders.

Euro is planned to be spent on buybacks for cancellation. That equates to getting on for 20% of the current market cap, so that gives an indication of how much each share would rise in price if the market cap remained constant, over that long period with such a removal of shares from the market. Obviously that is unlikely Vodafone will more likely have a lower or higher market cap in a couple of years time.

Long

''Still, the div is reduced to 4.5c later this year regardless of how many shares. I am going to miss that income as an investor''

The first reduction will be the February 2025 payment. The reduced forward dividend yield based on the current share price will still be above the ftse 100 average. Billions are planned to be returned to shareholders via buybacks, which makes a great deal of sense whilst the valuation is very low, and it also gives more flexibility.

''Still have UK 3 to look forward to but that might be after the election.''

News to move the process along is due on Friday. A UK merger with 'three' will be a of good benefit.

Rob

''how much do you think these buybacks would increase the share price''

the sole purpose of a return to shareholders by way of buybacks for cancellation is to reduce share capital.

The value of each share will depend upon the value that the market places on the Vodafone business divided by the number of shares in issue. The market value fluctuates each day.

Mole

''that suggests a buyback has zero effect, possibly negative effect, if you are using assets to buyback the stock.

It only works if ''

it appears that there are endless s amount of people who are clueless about buybacks for cancellation.

They work every time - to reduce share capital. The market values Vodafone on a daily basis. That worth is represented by the number of shares in issue, giving a price per share.

I would rather that money was invested on reducing the share count, and therefore in the future having monies allocated to dividends being available to fewer shares than stuck in an asset making no returns. The return/value to shareholders goes into the remaining shares.

Jest

''And yet the share price is practically back to where it was before.''

it closed on Thursday at 66.09p - currently 67.33p.

The share price did not plummet on Friday with news of pulling out of Italy, halving the dividend with buybacks to take place

''The share price is being decimated''

not as bad as Metro's £40 to 31p .

Lloyds shareholders should count themselves lucky

It's market cap is even lower than that of Metro - both peanuts.

Jcb - after increasing your selling price from 48p to 50p, will you be regretting not having taken the 49.95p that may have been on offer for a very brief time.

Pc

''Lower dividends from next year

"next year"...... starts with the H1 dividend for H1 ending 30th September 2024 (this year)''

??

Full year results are not until May - I am expecting a final dividend of 4.5c payable in September

Jes

''is selling core business units and doing buybacks.''

Not sure if part of a portfolio not make a profit can be classed as much of a core 'business'.

Vodafone are doing an 'Aviva', who simplified their business by selling off assets, and are now continually purchasing back their own shares. These actions have been a great benefit to shareholders.

''What would happen if Apple or Netflix announced they can't make a profit in Europe so they need to cut back and focus on other markets. There would be a plunge in share price, a change in CEO''

The Vodafone share price went up on the news of the Italy sale , dividend cut and buybacks and the CEO is still in place.

''Like with BT, main hope here is eventual takeover ''

Complete nonsense

Billion

''77.1p ''

50 million shares in issue may do it, but would prefer fewer shares by that price.

Ap

''Should I let my divi reinvest if it’s at this price ?

I feel it’s a bit high now''

Aviva continuing having them purchased for cancellation.

Also use of Google cloud

https://www.lloydsbankinggroup.com/media/press-releases/2020/lloyds-banking-group/lloyds-banking-group-announces-collaboration-with-google-cloud-to-accelerate-digital-transformation.html

Data is being transferred from old legacy systems onto a cloud-based core banking platform developed by Thought Machine in which Lloyds is a stakeholder.

Olr

Yes it certain would, but would be a much better benefit with 40 Billion shares in issue rather than 63 Billion shares in issue, as the amount allocated to dividends would mean a much larger per share payment.

Pc

''the div bill is normally determined by the dividend policy regarding % of earnings ''

9 cents as a percentage of earnings? would have been at 9 cents for 5 years

Money allocated to dividends will be presented on a per share basis.

Reducing the share count will allow the per share basis to be increased if that is what is decided or monies saved on the reduced share count could be redirected toward debt reduction or investment - time will tell (post 2025).

''Strong resistance at 50p''

Not long ago people were saying that about 48p.

Lower for longer would be of great benefit for shareholders holding for the long term . The share price makes no difference to the amount allocated to dividend returns.

Flec

Yes, an excellent return on investment. Shareholders of course will also win with asset value increases if shares were having to be bought back at a higher level