Tuesday, November 13, 2012

Dividend Increase: VOD

Vodafone Group (VOD) is increasing its "interim" dividend (the first semi-annual dividend for 2013) by 7.2%, from 3.05 to 3.27 pence per ordinary share. The exchange rate for the American Depositary Shares (1 ADS = 10 ordinary shares) will likely be determined sometime in January, but at the current exchange rate, this works out to an increase in U.S. dollars of about 9.8%. Given that I own 80 shares of VOD, my interim dividend will be about $40.73, to be paid sometime in February.

In related news, Vodafone is receiving a special dividend payment of about £2.4B from Verizon Wireless, of which £1.5B will be used to buy back shares. The company also reported an H1 net loss due to write-downs in troubled Spain and Italy. Southern Europe will likely continue to weigh on the company's operating results in the short term.

5 comments:

  1. Not to mention VOD shares are being hammered today, down over 3.3%!

    sigh, if only I had some capital on hand. This is great news for VOD shareholders.

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    1. FI Fighter: I also noticed today's price decline. Unfortunately, I don't have sufficient cash to make another purchase this month, so I will just have to watch the action.

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  2. I hope that the price stays beaten down until I can get some money freed up. I've been waiting for VOD to drop below $26 for months, and now that it does I can't pick up any shares.

    Although it's good news for current and prospective shareholders.

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    Replies
    1. Passive Income Pursuit: I know how you feel about waiting for a price drop, only to be unable to take advantage of it due to a lack of cash. I've been in that situation many times. However, perhaps VOD will remain on sale for a while.

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  3. FreedomPop is Britian's first ABSOLUTELY FREE mobile phone provider.

    Voice, text and data plans are priced at £0.00/month.

    ReplyDelete