Vodafone

[Dod101]

Finally got fed up of Vodafone. Much too late of course but the yield now on offer is ridiculous. Just sold and split the now modest proceeds between BAT and HFEL. (Not allowed on this Board I guess to mention an IT but no more will be said.) BAT is surely fine for the foreseeable future.

Dod

[idpickering]

Finally got fed up of Vodafone. Much too late of course but the yield now on offer is ridiculous. Just sold and split the now modest proceeds between BAT and HFEL. (Not allowed on this Board I guess to mention an IT but no more will be said.) BAT is surely fine for the foreseeable future.

Dod

Can't say I blame you Dod. I actually topped up not long ago, and although not a perfect HYP share, I shall continue to hold.

Ian.

[IanTHughes]

Assuming no massive changes, I will be topping up in February.

You got to love that yield


Ian

[Horsey]

Assuming no massive changes, I will be topping up in February.

You got to love that yield


Ian

Whats the cover versus free cash flow at the moment?

[monabri]

I'm not as pessimistic about VOD as Dod (that rhymes!) but in terms of dividend cover, the 'replacements ' surely must be a safer bet, albeit at a slightly lower aggregate yield? The gamble is that BATS has stabilised (or it's a case of expensively bought yield as someone has commented on before ).

Thinking about it, the decision to top up BATS strikes me as odd based on a previous posting (I can understand the other top up)........

viewtopic.php?f=56&t=15503#p190765

BATS being mentioned specifically (along with VOD) as being held in too many funds along with an individual HYP holding. Getting rid of VOD, okay, further BATS top up..?

I guess I would have been slightly less surprised to see the whole of the VOD funds going into 'other investment vehicles'.

[Arborbridge]

Finally got fed up of Vodafone. Much too late of course but the yield now on offer is ridiculous. Just sold and split the now modest proceeds between BAT and HFEL. (Not allowed on this Board I guess to mention an IT but no more will be said.) BAT is surely fine for the foreseeable future.

Dod

I believe that part in brackets is a misunderstanding. I'm quite sure that a brief mention of an IT is acceptable on this board if it is small part of your post. This is no different to us giving any form of OT comment in passing, such as aasking Ian if he has any cats now (I think the answer is, no, BTW). Mentioning that you split your proceeds in that way just completes the picture and there's nothing wrong with it, in my view. What would be unacceptable would be a long discussion about cats or ITs alike.

Let's not pretend the restrictions here are greater than they really are - in doing so we diminish our own board.

[idpickering]

I believe that part in brackets is a misunderstanding. I'm quite sure that a brief mention of an IT is acceptable on this board if it is small part of your post. This is no different to us giving any form of OT comment in passing, such as aasking Ian if he has any cats now (I think the answer is, no, BTW). Mentioning that you split your proceeds in that way just completes the picture and there's nothing wrong with it, in my view. What would be unacceptable would be a long discussion about cats or ITs alike.

Let's not pretend the restrictions here are greater than they really are - in doing so we diminish our own board.

I agree with the sentiment of your post Arb. Some common sense hereabouts could go a long way. As for the cats, we now have none, although I seem to be next door’s cat’s best mate. Next door up here means 500m away lol.

Ian

[IanTHughes]

Assuming no massive changes, I will be topping up in February.

You got to love that yield

Whats the cover versus free cash flow at the moment?

I do not have a number but I think the technical term is ….. stretched

The Interim Dividend, announced back in November and to be paid just over two weeks from now, was a hold at EUR 4.84 and my belief is that the final will also be held, at EUR 10.23. A rise is unlikely and a cut is of course a possibility, but various commentators have been warning of such ever since I first bought, almost seven years ago.

I am happy to hold and while I could of course hold off on any top-up decision until the final results are announced in mid-May, my feeling is that today’s yield is safe enough. Even if I am wrong, going forward into the long-term, I really do not see much of a downside to what will be a fairly small top-up – 0.50% by value of my HYP


Ian

[jackdaww]

bit of a gamble bit tempted to add .

[monabri]

The last data published on Morningstar indicated a free cash flow per share of 19p. The divi was a tad over 15 euro (13p).

The free cash flow covered the divi.

http://financials.morningstar.com/ratio ... region=GBR

We will have to see what Mr Read does...as he has only been in post as CEO for a few months. The divi amounts to £3.7 billion p.a, he might decide to nibble some of the debt...of course, I hope not!

[ayshfm1]

Best future, fags or mobile phones?

Mobile phones everytime for me. However I held Telewest on the basis that highspeed broadband was a no brainer......

[IanTHughes]

The last data published on Morningstar indicated a free cash flow per share of 19p. The divi was a tad over 15 euro (13p).

The free cash flow covered the divi.

Correct but those figures were for March last year. Since then Vodafone has acquired certain european parts of Liberty Global

https://www.vodafone.com/content/index/ ... mania.html

Now there are some who say that this recent deal, which did introduce further debt, may be stretching the free cash flow just a bit too far. If they are right a dividend cut is most definitely on the cards.

To misquote Dirty Harry: "Do think you are lucky punk?"

My answer: "Yes I do!"


Ian

[jackdaww]

bit of a gamble bit tempted to add .

====================

a divi cut wont bother me - as long as the business prospers in the long run .

[EssDeeAitch]

The last data published on Morningstar indicated a free cash flow per share of 19p. The divi was a tad over 15 euro (13p).

The free cash flow covered the divi.

http://financials.morningstar.com/ratio ... region=GBR

We will have to see what Mr Read does...as he has only been in post as CEO for a few months. The divi amounts to £3.7 billion p.a, he might decide to nibble some of the debt...of course, I hope not!

Thanks for this link monabri, I will bookmark that one!

Any idea why they report "Payout Ratio" as blank in some years when there is both dividends and EPS (assuming those are the numbers they are using to calculate. As Payout Ratio is stated as calendar year, I cant calculate what numbers they have used.

[Arborbridge]

The last data published on Morningstar indicated a free cash flow per share of 19p. The divi was a tad over 15 euro (13p).

The free cash flow covered the divi.

http://financials.morningstar.com/ratio ... region=GBR

We will have to see what Mr Read does...as he has only been in post as CEO for a few months. The divi amounts to £3.7 billion p.a, he might decide to nibble some of the debt...of course, I hope not!

Thanks for this link monabri, I will bookmark that one!

Any idea why they report "Payout Ratio" as blank in some years when there is both dividends and EPS (assuming those are the numbers they are using to calculate. As Payout Ratio is stated as calendar year, I cant calculate what numbers they have used.

There is no cover in those years where the blanks are.

[Raptor]

Finally got fed up of Vodafone. Much too late of course but the yield now on offer is ridiculous. Just sold and split the now modest proceeds between BAT and HFEL. (Not allowed on this Board I guess to mention an IT but no more will be said.) BAT is surely fine for the foreseeable future.

Dod

I believe that part in brackets is a misunderstanding. I'm quite sure that a brief mention of an IT is acceptable on this board if it is small part of your post. This is no different to us giving any form of OT comment in passing, such as aasking Ian if he has any cats now (I think the answer is, no, BTW). Mentioning that you split your proceeds in that way just completes the picture and there's nothing wrong with it, in my view. What would be unacceptable would be a long discussion about cats or ITs alike.

Let's not pretend the restrictions here are greater than they really are - in doing so we diminish our own board.

Moderator Message:
Mentioning IT's is acceptable (context dependant of course), it is whether that "mention" spawns its own posts. That is not acceptable, thus a follow-on post has been deleted. Raptor.

[EssDeeAitch]

The last data published on Morningstar indicated a free cash flow per share of 19p. The divi was a tad over 15 euro (13p).

The free cash flow covered the divi.

http://financials.morningstar.com/ratio ... region=GBR

We will have to see what Mr Read does...as he has only been in post as CEO for a few months. The divi amounts to £3.7 billion p.a, he might decide to nibble some of the debt...of course, I hope not!

Thanks for this link monabri, I will bookmark that one!

Any idea why they report "Payout Ratio" as blank in some years when there is both dividends and EPS (assuming those are the numbers they are using to calculate. As Payout Ratio is stated as calendar year, I cant calculate what numbers they have used.

There is no cover in those years where the blanks are.

I was under the impression that the Payout Ratio was a function of divi's and earnings (Divi's/EPS) where a divi less than EPS will show as a value below 100% and where a divi is above EPS then the value would be greater than 100%. I am confused as to where dividend cover would come into it. Have I got this wrong?

[moorfield]

Finally got fed up of Vodafone. Much too late of course but the yield now on offer is ridiculous. Just sold and split the now modest proceeds between BAT and HFEL.

Why? What's happened today? I can't see any RNS or announcement that helps me second guess (25 Jan is the next due update btw). Your comment re the yield suggests there may be some dumpology at work (>2 * FTSE yield perhaps), or is it a dither-tinker?

As for BAT(s), is the yield now on offer not also ridiculous?

[Ashfordian]

The last data published on Morningstar indicated a free cash flow per share of 19p. The divi was a tad over 15 euro (13p).

The free cash flow covered the divi.

http://financials.morningstar.com/ratio ... region=GBR

We will have to see what Mr Read does...as he has only been in post as CEO for a few months. The divi amounts to £3.7 billion p.a, he might decide to nibble some of the debt...of course, I hope not!

If you were the new CEO what would you do in this situation? Would you allow yourself to be constrained by this divi payout when all your incentives are tied to future performance?

[Dod101]

I have been out all day and am surprised at the number of posts generated on this thread. As I said I just got fed up of Vodafone. It has dropped in value by around 25% and the current yield is to me just a nonsense, and points to a dividend cut. It may not happen of course but I would not buy at current levels.

As for fags, yes I know I said I would not buy any more but I think that in the longer term, BAT's dividend is secure and the price will surely rise. It makes I think for a much easier judgement call than Vodafone. I chose BATs because I hold less of it than Imps.

Arb may note that this is part of my move from higher yield and hazardous to lower yield and a more secure one. I like HFEL and can expand on that elsewhere. I have not been pickering around; I just decided that Vodafone was my least good share. I will keep National Grid for the time being.

I feel much better for having done the deed.

Dod