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After releasing half-year outcomes on November 11, Vodafone (LSE: VOD) shares rose to a 52-week excessive. The share worth is up round 50% from ranges in April. Efficiency was robust, income was growing and revenue and money movement got here in on the higher finish of steerage. And the agency upped its dividend for the primary time in years.
Early days
Germany is Vodafone’s largest market; subsequently a current return to development there’s very optimistic certainly. Africa confirmed energy too in a rising market. Competitor within the area Africa Airtel being up 158% this yr exhibits what is perhaps potential there.
Excellent news
Dividends-wise, Vodafone is transferring again to a progressive dividend coverage. In different phrases, the dividend ought to slowly rise within the years forward. The yield stands at 5.08% which places it among the many greater payers of the FTSE 100 already. This comes after years of barely reasonably priced dividends that finally led to a big discount.
Dividends are a pleasant ‘cash in hand’ profit to proudly owning a inventory, however they don’t have the identical impact on the share worth as buybacks. Vodafone confirmed one other €500m is being put in direction of share buybacks. The overall bundle can be €4bn by the point it’s completed, a good sum in comparison with the agency’s market cap of €25bn. This might push the share worth upwards too.
I bear in mind writing about this inventory a few years in the past and concluding it was in a reasonably tough place. Issues look significantly better now. I’d say it’s a inventory traders might want to contemplate. As for my very own resolution, I nonetheless suppose there are higher alternatives on the market in the intervening time for the kind of portfolio I’m making an attempt to construct.
