Vodafone Interims

[daveh]

Can be found here:
www.investegate.co.uk/article.aspx?id=2 ... 1536P&fe=1

Dividend
For the six months ended 30 September 2016 and beyond, dividends are declared in euros and will be paid in euros, pounds sterling and US dollars, aligning the Group's shareholder returns with the primary currency in which we generate free cash flow. The foreign exchange rate at which future dividends declared in euros will be converted into pounds sterling and US dollars will be calculated based on the average exchange rate over the five business days during the week prior to the payment of the dividend. In May 2016, the Board determined that future dividend growth would be calculated from the level of 14.48 eurocents per share for the year ended 31 March 2016 (six months ended 30 September 2015: 4.65 eurocents per share), which is equivalent to the total dividend payout of 11.45 pence for the year ended 31 March 2016 (six months ended 30 September 2015: 3.68 pence) at the 31 March 2016 foreign exchange conversion rate of £:€1.2647.



The directors have announced an interim dividend per share of 4.74 eurocents, representing a 1.9% increase over the prior financial year's interim dividend based on the 31 March 2016 foreign exchange conversion rate of £1:€1.2647. The ex-dividend date for the interim dividend is 24 November 2016 for ordinary shareholders, the record date is 25 November 2016 and the dividend is payable on 3 February 2017. Dividend payments on ordinary shares will be paid directly into a nominated bank or building society account.


Highlights

· H1 Group organic service revenue up 2.3%*; H1 Group revenue down 3.9% to €27.1 billion

· Q2 organic service revenue growth of 2.4%*, led by improvement in Europe to 1.0%*; AMAP grew 7.1%*

· H1 Group organic EBITDA growth of 4.3%* to €7.9 billion, supported by strong cost control

· Breakeven free cash flow ('FCF'), reflecting lower capital additions and seasonal working capital outflows

· Non-cash impairment in India of €5.0 billion, net of tax, due to increased competition

· Full year guidance narrowed: EBITDA now €15.7-€16.1 billion (3-6% organic growth), FCF at least €4.0 billion

· Interim dividend per share of 4.74 eurocents, up 1.9% based on the 31 March 2016 year-end conversion rate

[micrographia]

Thanks for flagging this up Daveh.

EEM

[Dod1010]

The results are not very interesting are they? I suppose more or less steady as she goes.

[daveh]

The results are not very interesting are they? I suppose more or less steady as she goes

Increased dividend, but still not covered by cash flow so its being paid from debt and debt was up at the half year. However management suggest that they have increased the divi due to improved performance. Be interesting to see the change in debt at the year end. Don't plan to add more until the divi is covered by cashflow.

[JMN2]

Topped up around 20% today together with Centrica, honestly did not bother reading this thread or the interims so I am studying this now. Top-up spreadsheet told me to do it, ignored Pearson though, so not a total fanatic.

[kempiejon]

Topped up around 20% today together with Centrica, honestly did not bother reading this thread or the interims so I am studying this now. Top-up spreadsheet told me to do it, ignored Pearson though, so not a total fanatic.

Centrica's history bothers me, as has been said VODs dividend doesn't have cover/cash flow, although it's been growing it's income in my HYP ruled out for topping up.

[grimer]

VOD is one of my larger holdings due to a previous employee share scheme that I transferred to my ISA. I won't be adding more unless the cover increases. To be honest, I don't think it would pass a 'would I buy it now' test, but I'm willing* to hold for a while longer.

( * I'm not exactly happy to hold)

[Raptor]

Like kempiejon the cover still worries me. Will hold but top-up, not yet.....

Raptor

[Dod1010]

JMN

Why do you follow a spreadsheet? That is mechanical investing, never a good idea. Instinct is a much better guide. I sold Centrica at the time of its cut (or a little later) and I would not today be buying Vodafone, although I hold.

[JMN2]

Dod1010, I don't follow a spreadsheet always, sometimes I buy based on HYP Practical board posts, sometimes based on a screener (which is what the spreadsheet basically is) and sometimes I just want to make the equity holding MV%'s more even and less skewed towards the likes of RDSB and BA..

And even when ignoring the most of the analysis I end up with roughly the same portfolio. Someone who is worried that the cover for VOD is too small or net debt for susch and such too large may well have larger proportions of those shares in portfolio.

[Wizard]

I was maybe more generous than others in being willing to accept the cover. But with the current cover plus risk associated with Euro vs £ exchange rate they fall off my list for now.

Terry.

[funduffer]

I have a rule for buying into my HYP of cover >1.5.

I apply this to both new purchases and top-ups.

I also only tinker in exceptional circumstances.

So I hold VOD, but would not top-up at present, but would also not sell.

FD

[Wizard]

I have a rule for buying into my HYP of cover >1.5.

I apply this to both new purchases and top-ups.

I also only tinker in exceptional circumstances.

So I hold VOD, but would not top-up at present, but would also not sell.

FD

Trouble is taking this rule and reflecting on the posts on gearing you end up with very little out there that you can buy for an HYP.

Terry.

[toofast2live]

Precisely. We are in a dangerously overvalued market. Dividend cover has been declining for years and smoke and mirrors are everything.

[funduffer]

Trouble is taking this rule and reflecting on the posts on gearing you end up with very little out there that you can buy for an HYP.

Terry.

Well I have found new shares for my HYP recently - Marstons (MARS), Stagecoach (SGC) and Capita (CPI), all of which have cover >1.5.

CPI has high debt as well, so I have taken a bit of a gamble, but Woodford thinks the divi is safe (for now).

So far I am pleased to have diversified with these rather than top-up VOD, but it is early days!

FD