Discussion
I am sure there must be a cut off because every 'Johnny come lately' will jump in, I have had no info but I'm feeling very pleased with myself as I hold in excess of 12,000 shares mostly bought at £1.70 so apart from showing a 29.24% rise in value according to my data on my trading account I could be in for a decent bonus. I bought 3 lots of 4000 back in June 2011 and another in October 2011 and about a month ago for the last which I paid a bit more for.
Countdown said:
DSLiverpool said:
Anyone know how i can find out the payout cut off for shareholders or is the market still open?
Pretty sure the market is still open - otherwise wouldn't the shares have dropped in value? 
Have they actually decided whether or not there WILL be a payout?
Countdown, 11p per share dividend seems to be post consolidation. The details haven't been announced, but from the language in the statement I anticipate shareholders will have one "new" share for every two existing shares that they hold.
Simplified; if you have 1000 shares at the moment, worth 205p each, then at the moment you have £2050. Then when the time comes you will receive 112p per share (£1120) but the share price would fall by 112p to 93p leaving you with £930 in shares and £1120 in returned value, which is still the same £2050. However Vodafone will consolidate at the same time, so your 1000 shares will, if my assumption of 1 for 2 is correct, become 500 shares, worth 186p each.
So while the dividend may well be 11p on those new shares, that's the equivalent of 5.5p on the current shares if my interpretation is correct.
Is now a bad time to also point out that the deal isn't really $130 Billion any more? Based on Verizon's pre-market price, the deal is now a mere $129 Billion. Hardly worth bothering. But in all seriousness, I urge you all to read, read and re-read all of yesterday's statement. There are a lot of factors that are going to impact Vodafone's share price in the coming months. It might look like a long boring statement, but nobody should own a single share without reading it. There is a lot of substance beyond the headlines.
Simplified; if you have 1000 shares at the moment, worth 205p each, then at the moment you have £2050. Then when the time comes you will receive 112p per share (£1120) but the share price would fall by 112p to 93p leaving you with £930 in shares and £1120 in returned value, which is still the same £2050. However Vodafone will consolidate at the same time, so your 1000 shares will, if my assumption of 1 for 2 is correct, become 500 shares, worth 186p each.
So while the dividend may well be 11p on those new shares, that's the equivalent of 5.5p on the current shares if my interpretation is correct.
Is now a bad time to also point out that the deal isn't really $130 Billion any more? Based on Verizon's pre-market price, the deal is now a mere $129 Billion. Hardly worth bothering. But in all seriousness, I urge you all to read, read and re-read all of yesterday's statement. There are a lot of factors that are going to impact Vodafone's share price in the coming months. It might look like a long boring statement, but nobody should own a single share without reading it. There is a lot of substance beyond the headlines.
The LSE release gives the impression that dividend will be 11p on existing basis, i.e. per 93p share after distribution, if so, there would not be much corporate action required to consolidate as SP should rise to bring dividend yield into line. The release and the Presentation both almost completely ignored this aspect of the transaction.
I don't read it that way Sid. The specific piece of text that I believe means that the 11p relates to what will be the "new" consolidated shares is this;
"The Board expects that strong free cash flow generation will continue to underpin shareholder returns, and so intends to increase the interim dividend per share (pre-consolidation) by 8% to 3.53p. Assuming completion of the Transactions, the Board also intends to increase the final dividend per share (post-consolidation) by 8% resulting in a proposed total dividend per share of 11p for the 2014 financial year, and to grow it annually thereafter."
If the 11p dividend related to the existing situation, then they would be paying £4.9 billion in dividends. They are only expecting to make £5 billion in operating profit next year. That's not enough cover for them, especially when they have already committed themselves to increase the dividend in the future.
Consolidating to half the current shares in issue would mean they pay about £2.45 billion in dividends, which is much more in line with what I would expect given their outlook.
That's why I'm interpreting it that way. Until the circular is sent out we won't really know, but it's more fun to speculate while we wait isn't it!
"The Board expects that strong free cash flow generation will continue to underpin shareholder returns, and so intends to increase the interim dividend per share (pre-consolidation) by 8% to 3.53p. Assuming completion of the Transactions, the Board also intends to increase the final dividend per share (post-consolidation) by 8% resulting in a proposed total dividend per share of 11p for the 2014 financial year, and to grow it annually thereafter."
If the 11p dividend related to the existing situation, then they would be paying £4.9 billion in dividends. They are only expecting to make £5 billion in operating profit next year. That's not enough cover for them, especially when they have already committed themselves to increase the dividend in the future.
Consolidating to half the current shares in issue would mean they pay about £2.45 billion in dividends, which is much more in line with what I would expect given their outlook.
That's why I'm interpreting it that way. Until the circular is sent out we won't really know, but it's more fun to speculate while we wait isn't it!
I've got just under 7000 shares in Vodafone with an average price of £1.73, not entirely sure on what to do, but will certainly be paying close attention.
http://www.hl.co.uk/news/articles/vodafone-cashes-...
http://www.hl.co.uk/news/articles/vodafone-cashes-...
dirty boy said:
I've got just under 7000 shares in Vodafone with an average price of £1.73, not entirely sure on what to do, but will certainly be paying close attention.
http://www.hl.co.uk/news/articles/vodafone-cashes-...
I have a little over 6000 shares averaged at 1.34 so will alsomake a bit of money out of them . I suggest you hang onto them.....after the payout they will plunge but you will be no worse off (due to the payout) they may climb up as they are believed to be a target for a takeover.http://www.hl.co.uk/news/articles/vodafone-cashes-...
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