Vodafone Results, including dividend cut.

[idpickering]

Vodafone announces results for the year ended 31 March 2019
14 May 2019
Financial highlights
• Group revenues of €43.7 billion. The loss for the financial year of €7.6 billion was primarily due to a loss on disposal of Vodafone India (following the completion of the merger with Idea Cellular) and impairments, as announced in November
• Organic service revenue (excluding handset financing and settlements in Germany, IAS 18 basis) up 0.3%** (Q4 -0.6%**), as good performance in most markets offset increased competition in Spain and Italy and headwinds in South Africa
• Organic adjusted EBITDA up 3.1%** (excluding handset financing and prior year settlements, IAS 18 basis), meeting guidance for ‘around 3%’ growth. This was supported by an operating expense decline of €0.4 billion in Europe and common functions
• Free cash flow pre-spectrum of €5.5 billion (guidance basis), with sustained capital additions of €7.2 billion (16.0% of revenue)
• Dividend per share rebased to 9.00 eurocents (15.07 eurocents in FY18), implying a final dividend of 4.16 eurocents; progressive future dividend policy
• 2020 financial guidance (IFRS15/16 basis): Adjusted EBITDA of €13.8 billion - €14.2 billion, implying low single digit organic growth. Free cash flow pre-spectrum of at least €5.4 billion

https://www.vodafone.com/content/dam/vo ... -FINAL.pdf

[idpickering]

Dividenddata have them at offering a more reasonable 5.92% yield.

https://www.dividenddata.co.uk/dividend ... y?epic=VOD

Don't mind admitting I wish I'd followed Dod's lead and dropped them weeks ago. Oddly, I'm more inclined to perhaps buy more after this news is absorbed by the market.

Ian.

[Arborbridge]

Another black day in HYPland - or perhaps just a grey one! I awoke to some guy on radio 4 business news pointing out what a hopeless company VOD has been and still is. Makes one want to sell the shares forthwith - but I probably won't. This will be another one in the recovery dog-house.

Arb.

[monabri]

On the Hargreaves Lansdown website they show broker recommendations for VOD.

6 in 9 say "strong buy"
2 in 9 say " buy"
1 in 9 say "neutral"

Shows how much brokers know!

[Dod101]

You read it here first! As Ian said I sold in January at 1.4781 and bought BAT at £25 and HFEL at 3.42 with the proceeds. That bit of tinkering has so far worked out OK. Gengulphus reminded me that in say 10 years time I will know if it was a good idea. So far though, (and I may not have 10 years anyway) it has worked out fine.

This cut will not come as a surprise to anyone though, as the market has been telling of this for a long while.

To monabri, brokers know nothing and it is best to ignore their views. That is, as MDW would say, mere speculation.

Dod

[monabri]

You read it here first! As Ian said I sold in January at 1.4781 and bought BAT at £25 and HFEL at 3.42 with the proceeds. That bit of tinkering has so far worked out OK. Gengulphus reminded me that in say 10 years time I will know if it was a good idea. So far though, (and I may not have 10 years anyway) it has worked out fine.

This cut will not come as a surprise to anyone though, as the market has been telling of this for a long while.

To monabri, brokers know nothing and it is best to ignore their views. That is, as MDW would say, mere speculation.

Dod

Hah..I was stating the bloomin' obvious! I'd convinced myself a long time ago regarding brokers views..one merely has to look at their "forecasts" v reality on any range of shares.

There isn't an icon for "cynicism " that I know of, else I'd have used it!

[monabri]

I see the yield on offer on VOD continues to increase. I'd hoped that the divi cut would have stabilised the share price.

[Wizard]

No surprise the dividend has been cut. I guess the only good news for HYP holders is the market was so absolutely certain of a cut the news has not resulted in any meaningful change in the share price.

[Wizard]

I see the yield on offer on VOD continues to increase.

Errr… I don't think the small fall in price this morning has repaired the impact of the dividend cut.

[moorfield]

Oddly, I'm more inclined to perhaps buy more after this news is absorbed by the market.

Am I right in thinking VOD is now no longer a HYP Practical pick - new or top-up - for the next few years at least ?

Would be interesting to hear how those who have been topping up / chasing the yield for the last year feel now ...

[Wizard]

Oddly, I'm more inclined to perhaps buy more after this news is absorbed by the market.

Am I right in thinking VOD is now no longer a HYP Practical pick - new or top-up - for the next few years at least ?

Would be interesting to hear how those who have been topping up / chasing the yield for the last year feel now ...

Not the answer I think you are looking for, but technically it is still a valid share to discuss here as a new purchase given the Guidelines only refer to...

...Selection criteria may include the yield, the dividend record and a history of increases...

My underlining.

So it is not mandatory to take account of the cut.

[Wizard]

On the Hargreaves Lansdown website they show broker recommendations for VOD.

6 in 9 say "strong buy"
2 in 9 say " buy"
1 in 9 say "neutral"

Shows how much brokers know!

They are not necessarily looking at it from an income perspective, they may see there being scope for good capital growth from the current near 10 year low in the share price. I'm not saying they are right, just that they may be thinking that for non-HYP reasons.

[Dod101]

Oddly, I'm more inclined to perhaps buy more after this news is absorbed by the market.

Am I right in thinking VOD is now no longer a HYP Practical pick - new or top-up - for the next few years at least ?

Would be interesting to hear how those who have been topping up / chasing the yield for the last year feel now ...

I think VOD is a bit like BT. It will lull us into a false sense of security from time to time and then let us down again. If you can pick the good times that is fine. I have held BT twice and both times sold out because I lost faith in them.

Dod

[Alaric]

Would be interesting to hear how those who have been topping up / chasing the yield for the last year feel now ...

It was a recommendation as part of a recently selected portfolio. The recommendation was not without critics and those who defended the decision.

Even rebased (another word for cut) the dividend yield is still above the FTSE average.

As far as HYP rules are concerned aren't new selections supposed to exclude dividend cutters?

[PinkDalek]

As far as HYP rules are concerned aren't new selections supposed to exclude dividend cutters?

Try reading The Lemon Fool Board guidance:

viewtopic.php?f=15&t=8651

[TurboukToo2]

Ex-dividend 6 June 2019
Record date is 7 June 2019
Payable on 2 August 2019

[jackdaww]

You read it here first! As Ian said I sold in January at 1.4781 and bought BAT at £25 and HFEL at 3.42 with the proceeds. That bit of tinkering has so far worked out OK. Gengulphus reminded me that in say 10 years time I will know if it was a good idea. So far though, (and I may not have 10 years anyway) it has worked out fine.

This cut will not come as a surprise to anyone though, as the market has been telling of this for a long while.

To monabri, brokers know nothing and it is best to ignore their views. That is, as MDW would say, mere speculation.

Dod

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

yes i did read it , and took note , selling most at 145.

i will sell the rest soon , too much debt , competition , capex etc.

[monabri]

The interim divi (historical) was 4.84 eurocents and the rebased final will be 4.16 eurocents.

Going forward, is it reasonable to assume that any progressive dividend increase will be applied to the final dividend only - until it becomes bigger than the interim?

[Alaric]

Going forward, is it reasonable to assume that any progressive dividend increase will be applied to the final dividend only - until it becomes bigger than the interim?

It's 9.00 in total. With a new financial year, would they not just reset the relationship between interim and final?

[idpickering]

Oddly, I'm more inclined to perhaps buy more after this news is absorbed by the market.

Am I right in thinking VOD is now no longer a HYP Practical pick - new or top-up - for the next few years at least ?

Would be interesting to hear how those who have been topping up / chasing the yield for the last year feel now ...

Strictly speaking, I guess you're right. A screen carried out now would point this cut out, and cause new buyers, or holders, to look elsewhere. I have previous for buying on the dips (RDSB in 2016), and then hold on and wait for a hopeful recovery, hence my comment about maybe buying more VOD now the news is in. I will hold on, and may well buy more next week as my monthly pick. Sods law, sp up 2.5% as I type. On second thoughts, I've spent enough there already.

Ian.