New Report: Vodacom Group

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Vodacom Group Ltd, known by the ticker symbol VODAF, is a large-cap telecom services company, operating in the communication services business sector. This is my first report on Vodacom for this Viital portfolio or any of my previous six dog of the week portfolios.

Vodacom Group Ltd is a telecommunications provider. The company provides fixed-line, broadband and mobile services.

It earns revenue through two main segments: South Africa and international. International includes regions such as Tanzania, Democratic Republic of Congo, Mozambique, and Lesotho; the majority of revenue is sourced from South Africa.

Vodacom also has an enterprise service product, whereby telecommunications and managed services are offered to enterprises. The company owns mobile infrastructure.

The company was founded in 1993 and is headquartered in Midrand, South Africa. Vodacom Group Limited is a subsidiary of Vodafone Investments SA (Pty) Limited.

Three key data points gauge any dividend equity or fund such as Vodacom Group Ltd:

(1) Price

(2) Dividends

(3) Returns

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

VODAF Price

Vodacom Group’s price per share was $8.65 as of yesterday's market close. One year ago its price was $9.05. Therefore, VODAF’s share price fell 0.40 or about 4.4% in the past year.

If VODAF’s stock trades in the range of $8.00 to $10.00 this next year, its recent $8.65 share price might rise by $0.35 to reach $9.00 by April 20, 2023. My $0.35 upside estimate is strictly a guess. No brokerage houses track VODAF.

VODAF Dividends

Vodacom Group’s most recently declared semi-annual dividend of $0.2637 was paid December 6th 2021 to shareholders on record as of December 1st.  No 2022 dividend has yet been declared.

Vodacom Group Ltd paid its first annual dividend in December, 2012. That stretch marks 10 years come December

VODAF Returns

Adding a $0.53 VODAF annual dividend to the estimated one-year price upside of $0.35 shows a $0.88 potential gross gain, per share, to be reduced by any costs to trade Vodacom Group Ltd shares.

At yesterday's $8.65 price per share, a little over $1000 would buy 116 shares.

A $10 broker fee (if charged) would be paid half at purchase and half at sale and might cost us about $0.09 per share.

Subtract that maybe $0.09 brokerage cost from my estimated $0.88 gross gain estimate per share results in a net gain of $0.79 X 116 shares = $91.64 for a 9.15% net gain on a $1,003.40 investment.

So it is that Vodacom Group Ltd (VODAF) shows a possible 9.15% net gain including a 6.1% forward looking dividend yield.

Over the next year at this time our $1000 investment in VODAF might generate $61.00 cash dividends alone. Note that a single share of VODAF stock bought at yesterday's $8.65 price is just just over seven times less than the anticipated dividend income from our $1000.00 invested. So, by my dogcatcher ideal, this may be the right time to buy VODAF shares once they declare a 2022 dividend. An estimated next-year dividend from $1K invested is currently  just over  7X greater than yesterday's single share price. Consider yourself alerted. It's a sign. Go for the dividend, once one is declared!

All of the estimates above are speculation based on the past history of Vodacom Group Ltd (VODAF). 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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