Vodafone announces results for the six months ended 30 September 2018

[Arborbridge]

Somewhat off topic but that is why I think it is necessary to hold a Growth portfolio as well as a HYP. By definition a HYP is concentrating on high yield shares and often these are defensive (is this a joke?) and sometimes ex growth so I think we need to look to more growth shares as well.

Anyhow we can all breath a sigh of relief I guess with Vodafone. At least there is no cut but some very large impairment charges, cutting the assets and thus increasing the gearing ratio. That can hardly be good news.

Dod

I have some growth shares, but I often wonder "what is the point"? After all, they contribute nothing to my income unless sold, and even excellent companies or ITs with small dividends are almost a waste of space - contributing little to my general wellbeing. Take Finsbury Growth as an example, excellent growth in income and capital, but pretty useless as a pension provider. Hardly worth the effort of entering the dividends I receive: the same could be said of RB.

PS - I own shares in both!

Arb.

[IanTHughes]

Well at least the market liked them on opening 10p up as I write.

The market was pricing for a cut perhaps, so the rise today isn't unexpected and welcome.

(Coincidentally, my "< 2* benchmark yield" check brings VOD yield back into topuppable range on these results. Take that with a pinch of salt mind, some here suggest it to be nonsense, but I'm satisfied I've avoided a potential yield trap by my own definition for the last few months.)

That is one point of view. Another would be that you have failed to capitalise on a great yield. To me at least, therein lies the nonsense. Your "Yield Cap" would have stopped a purchase of Vodafone Group (VOD) yesterday, but not today. And the ONLY thing that has changed is the share price which has increased meaning you would gain a lower yield. If it was a yield trap yesterday, then it still is today. If it is not a yield trap today, then it never was yesterday.

It is nonsensical to me.


Ian

[Dod101]

Your "Yield Cap" would have stopped a purchase of Vodafone Group (VOD) yesterday, but not today. And the ONLY thing that has changed is the share price which has increased meaning you would gain a lower yield. If it was a yield trap yesterday, then it still is today. If it is not a yield trap today, then it never was yesterday.

It is nonsensical to me.

Hindsight is wonderful. Had Vodafone announced a dividend cut this morning your argument would have fallen flat.

Dod

[IanTHughes]

Your "Yield Cap" would have stopped a purchase of Vodafone Group (VOD) yesterday, but not today. And the ONLY thing that has changed is the share price which has increased meaning you would gain a lower yield. If it was a yield trap yesterday, then it still is today. If it is not a yield trap today, then it never was yesterday.

It is nonsensical to me.

Hindsight is wonderful. Had Vodafone announced a dividend cut this morning your argument would have fallen flat.

Hindsight has got nothing to do with it. My argument is not that the highest yields are always safe, rather that they are not always unsafe.


Ian

[moorfield]

That is one point of view. Another would be that you have failed to capitalise on a great yield. To me at least, therein lies the nonsense.

I didn't/don't need to. I measure progress in terms of overall income versus a long term target, against which I am already ahead this year. (More on that in my portfolio update in January.)

Your "Yield Cap" would have stopped a purchase of Vodafone Group (VOD) yesterday, but not today.

Exactly so. It's intended to be a simple and coarse risk measure to encourage myself not to chase higher yields with new money and look elsewhere. Lesson learnt from CLLN, into which I invested heavily at similar yields as VOD has been recently.

And the ONLY thing that has changed is the share price which has increased meaning you would gain a lower yield. If it was a yield trap yesterday, then it still is today. If it is not a yield trap today, then it never was yesterday.

I've already invited and am certainly interested in how others and yourself qualify what a "yield trap" is.

It is nonsensical to me.

A lot of what you read appears to be nonsense here IanT! I'm certainly happy to engage in constructive discussion if you're willing to reciprocate and qualify your opinions. In the meantime, I'm afraid, I'm putting you on mute ...

[IanTHughes]

Your "Yield Cap" would have stopped a purchase of Vodafone Group (VOD) yesterday, but not today.

Exactly so. It's intended to be a simple and coarse risk measure to encourage myself not to chase higher yields with new money and look elsewhere. Lesson learnt from CLLN, into which I invested heavily at similar yields as VOD has been recently.

And the ONLY thing that has changed is the share price which has increased meaning you would gain a lower yield. If it was a yield trap yesterday, then it still is today. If it is not a yield trap today, then it never was yesterday.

I've already invited and am certainly interested in how others and yourself qualify what a "yield trap" is.

In point of fact, I do not myself have a definition for “Yield Trap” as It does not figure in any of my deliberations when deciding on whether a particular share is a suitable HYP candidate or not. Either I consider the dividend safe or I do not, there is no “trap” about it. I will never make a purchase simply because the yield is high and so have no need of such a prohibition as you seem to find useful.

Also. I do understand that you use it as an extra security level. You don’t need the highest yields, so why even bother with them. I on the other hand, am attempting to maximise my income. I am sure that you would agree that if I consider a dividend safe it would be pretty silly to then reject it simply because the share price was too low!


Ian

[jackdaww]

the share price has gone up , but its still pretty grim , and possibly overpriced.

there is a lot of debt , poor dividend cover , and competition.

i would not be buying into that background.

there was director buying in september , and the hope new management will turn it all around, thats not enough for me.