New Report: Vodafone Group (VOD)

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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 first report on VOD for this Viital portfolio.  But I have reviewed in for one or more of my previous six dog of the week portfolios.

With about 270 million wireless customers, Vodafone is one of the largest wireless carriers in the world. More recently, the firm has acquired cable operations and gained access to additional fixed-line networks, either building its own or gaining wholesale access. 

Vodafone is increasingly pushing converged services of wireless and fixed-line telephone services. 

Europe accounts for about three fourths of reported service revenue, with major operations in Germany (about 30% of total service revenue), the U.K. (13%), Italy (12%), and Spain (10%). 

Outside of Europe, 65%-owned Vodacom, which serves sub-Saharan Africa, is Vodafone’s largest controlled subsidiary (12% of total service revenue). 

The firm also owns stakes in operations in India, Australia, and the Netherlands.

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 $15.80 as of yesterday's market close. One year ago its price was $17.71. Therefore, Vodafone's share price fell $1.91 or 10,8% in the past year. 

If Vodafone's stock trades in the range of $14.00 to $28.00 this next year, its recent $15.80 share price might rise by $4.20 to reach $20.00 by March 8, 2023. My estimate is  $4.99 below the median of one year target estimates from the three analysts who track VOD for brokerages.

VOD Dividends

Vodafone's most recent semi-annual dividend of $0.5056 per share was paid February 4th, to shareholders on record as of November 24th.  The VOD  Annual estimated dividend payout per share of $1.01 yields 6.4% per yesterday's $15.80 closing price. 

VOD has paid variable semi-annual dividend payouts generally increasing annually since August, 2000. That stretch will mark 22 years come August.

VOD Returns

Adding the $1.01 annual Vodafone Group PLC forward-looking dividend to its estimated one-year price upside of $4.20 shows a $5.21 potential gross gain, per share, to be reduced by any costs to trade VOD shares.  

At yesterday's $15.80 price per share, a little under $1000 would buy 63 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 $5.21 gross gain estimate per share results in a net gain of $5.05 X 63 shares = $318.15 for a 31.8% net gain on a $995.40 investment.

So it is that Vodafone Group PLC (VOD) shows a possible 31.8% net gain including a 6.40% forward estimated dividend yield. 

Over the next year at this time our $1000 investment in Vodafone Group PLC (VOD) could generate $64.00 in cash dividends alone. Note that a single share of VOD stock bought at yesterday's single share price of $15.80 is more than 4 times less than the dividend income from $1000.00 invested. So, by my dogcatcher ideal, now is a good time to pickup Vodafone Group PLC (VOD) shares. The estimated next-year dividend from $1K invested is 4.05 times more than yesterday's single share price of VOD. Consider yourself alerted. Its a sign!  Now's the time!

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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