Make your money go further for just 25p per day

Vodafone cuts dividend: are the shares still worth holding?

14/05/2019 · Vodafone (VOD) 

Dividends FTSE 100 News Politics

Vodafone headquarters building at night

Vodafone has cut its dividend for the first time in nearly 30 years, but shareholders don’t seem surprised – probably because the yield exceeded 10% yesterday and was a major red flag. The income now is still pretty generous based on the current share price and looks far more sustainable. But we’re worried about the group’s ambitious growth plans. 


Most investors hold Vodafone (LON: VOD) for its generous dividend which hadn’t been cut since the group listed in London in 1988. In recent years, the telecoms giant has managed to deal with a €19bn investment project, the launch of its 4G network and rising competition in India without trimming its pay-out. But 5G and a mammoth European acquisition have proved too much. With net debt expected to rise beyond 3 times adjusted cash profits once…

Sign up and read the full article

Register to continue reading our content.

Get FREE access now

Already a member? Login


Previous article Next article

Have your say

Log in or register to view or add comments.

For access to the top news and insights from the investment world

REGISTER FREE

Become a Champion Investor for just £90 a year.
 
 

START FREE TRIAL

More on Vodafone

Income Boosters: Vodafone dials up €2.4bn payout

13/05/2020 · Portfolio

It's not all doom and gloom for income investors. Although dividend cuts have been many and…


Coronavirus update: Vodafone’s 7% dividend yield looks safe to us

16/04/2020 · Portfolio

Most companies on the UK stock market now seem to have positioned themselves to ride out…


More Company Insights

Coronavirus impact: 29 May - yet more fund raises to close the week

Inspecs - looking good value

28/05/2020 · Inspecs Group PLC

Coronavirus impact: 28 May - boohoo illustrates the perils of short selling