by Travis Johnson, Stock Gumshoe | November 17, 2011 2:05 pm
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how does VOD have a higher dividend? it is currently at 3.4% while VZ’s yield is 5.4%.
No, VOD is more like 7%+ — half of it doesn’t show,
It’s a result of the VZW div to VOD and should be recurring.
Just checked the details, FYI: Trailing dividend from Vodafone was $2.10 over the last 12 months (they pay biannually, not quarterly), so that works out to a trailing yield of 7.7%. I expect the dividend to remain in the same range over the next year, though like most foreign companies they do not adhere strictly to the “stable or growing” payout strategy that large cap US stocks tend to aim for, they determine the dividend as they go based on performance and pay it out in unequal tranches … and, of course, for an international company currency fluctuation can play a large role — their biggest businesses are Verizon Wireless and their European divisions, but they also have strong positions in many emerging markets, particularly in India and throughout much of Africa. The dividend for the several years prior to the Verizon Wireless payouts began (that’s this year) was usually in the range of $1.20-$1.40/year.
Hi Travis- I have them both, too, along w/ AT&T —we like the dividend — but keep a tight stop loss—- we could be lulled into stealth income plays that may end up like the financials. Be sure to check out my email regarding the Oxford Club teaser. Two medical related stocks and one energy stock, ready for “exploding” moves…….
Well, this turns out to have been a mistake over the past year … and particularly today, with Vodafone clearly taking it on the chin worse than I expected thanks to the weakness in some of their core european markets, and bringing in fear of a lower dividend. I guess cell phone plans are more economically sensitive than I was guessing … and the Spanish and Italian economies are taking harder hits than I suspected too, probably. Having a mobile phone is almost indispensable, but you do spend less on them when unemployment is at 25% for your cohort.
Sorry, I’m not supposed to say that I make mistakes, right? I mean, “I was early.” International has been substantially worse than good ol’ US telecom over the past year, not changing my portfolio over this at the moment but I do regret swapping out of some of my Verizon to “internationalize” my cell phone exposure.