The stock has dropped over 16% since it’s high of $30.07 on August 8th.
June 30th, 2011 100 $26.47
August 20th, 2012 100 $29.53
November 16th, 2012 100 $25.20
My total cost for 300 shares is 8,119.85 USD (8,104.53 CAN), or 27.07 USD per share.
In 2012, I received $46.36 and $99.08 in dividends for 100 shares, as well as a special dividend of $62.11 (total = 207.55 USD). That was a yield of 5.49%, 7.84% if I include the special dividend.
The upcoming February 6th dividend is 0.327GBP per ADR, or approximately
(0.327 GBP * 1.5883 USD) - 0.01 USD ADR Charge = 0.5093 USD
Compared to last years 0.4636 USD, that’s a 9.9% increase. That’s right - because of favourable exchange rate, those that have ADRs get a higher increase in their dividend! The actual exchange rate will most likely be determined in January, so the numbers will change slightly.
I feel that Vodafone is a shareholder friendly company and is currently unloved. The latest results were below expectations and so far, there will be no special dividend paid to shareholders; this presents a good opportunity to buy. I’m comfortable with Vodafone as long as they don’t start borrowing money to pay the dividend.
If the final dividend is increased at the same rate as the interim dividend, I calculate a 2013 yearly dividend of about 1.59 USD. That’s a yield of 5.87% on my average cost of $27.07 per ADR. And a yield of 6.29% on Friday’s closing price!