Daily Stock Analysis: Vodafone Group

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Vodafone Group PLC, known by the ticker symbol VOD is a Large-cap telecom services firm, operating in the communication services business sector. This is my second report on VOD for this Viital portfolio I last reported on VOD on March eighth and selected it for one of my previous 6 portfolios.

Vodafone operates mobile and fixed-line networks and businesses in more than 20 countries. Its largest market is Germany, where it is the second mobile operator after Deutsche Telekom and owns a cable network after acquiring Kabel Deutschland in 2013 and Liberty Global Germany in 2019. In the U.K. and Italy, it acts as a mobile operator, while in Spain, it offers converged services after the acquisition of cable operator Ono in 2014. Vodafone also has operations in several Central European and African countries, which combined represent around one third of revenue.

Vodafone Group Public Limited Company has a strategic partnership with Open Fiber. As of March 31, 2021, it had approximately 315 million mobile customers, 28 million fixed broadband customers, and 22 million TV customers.

The company was incorporated in 1984 and is based in Newbury, the United Kingdom.

Three key data points gauge any dividend equity or fund such as Vodafone Group PLC (VOD).

(1) Price

(2) Dividends

(3) Returns

Those three basic keys best tell whether any company has made, is making, and will make money.
 

VOD Price

Vodafone’s price per share was $16.04 as of yesterday's market close. One year ago its price was $18.45. Therefore, Vodafone’s share price fell $2.41 or about 13% in the past year.

If Vodafone’s stock trades in the range of $14.00 to $20.00 this next year, its recent $16.04 share price might rise by $3.36 to reach $19.40 by June 8, 2023. My $3.36 upside estimate is in line with the median of annual price increases calculated three analysts covering VOD for broker firms.
 

VOD Dividends

Vodafone’s most recently declared semi-annual dividend of $0.4725 is payable August 5, 2022 to shareholders on record as of June 6th.

VOD initiated their first semi-annual dividend  at $0.01 as of June 15, 1989. The dividend has fluctuated variably up to $9.03 in 2014. June’s $0.4725 semi-annual payout equates to $0.95 annually and that annual payout is calculated to deliver a 5.89% annual yield per yesterday’s $16.04 share price.
 

VOD Returns

Adding the $0.95 VOD annual dividend to my estimated one-year price upside of $3.36 estimate shows a $4.31 potential gross gain, per share, to be reduced by any costs to trade VOD shares.

At yesterday's $16.04 closing price per share, a little under $1000 would buy 62 shares.

A $10 broker fee (if charged) would be paid half at purchase and half at sale and might cost us $0.16 per share.

Subtract that maybe $0.16 brokerage cost from my estimated $4.31 gross gain estimate per share results in a net gain of $4.15 X 62 shares = $257.30 for a 25.75% net gain including a 5.89% forward looking dividend yield.

So it is that Vodafone Group PLC shows a possible 25.75% net gain including a 5.89% forward-looking dividend yield.

Over the next year at this time our $1000 investment in Vodafone Group PLC shares might generate $58.90 in cash dividends. Of course, a single share of VOD stock bought at yesterday's $16.04 price is over 3.5 times less than the dividend income from our $1000.00 investment.

So, by my dogcatcher ideal, this a good time to pick up Vodafone Group PLC shares based on their forward looking dividends for the year 2022. The forthcoming annual dividends from $1K invested are 3.67 times greater than yesterday's single share price. Consider yourself alerted. It's a sign.

All of the estimates above are speculation based on the past history of Vodafone Group PLC (VOD). Only time and money invested in this stock will determine its market value.

Disclaimer:  This article is for informational and educational purposes only and should not be construed to constitute investment advice. Nothing contained herein shall constitute a ...

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