Should You Buy Vodafone Group Plc (ADR) (VOD)?

Although Vodafone Group Plc (ADR) (NASDAQ:VOD) does not offer the sturdiest of dividend covers — this is expected to remain anchored at around 1.5 until the end of 2015 — the company boasts a solid history of increasing dividends even in times of earnings pressure, providing investors with peace of mind.

Steady earnings growth expected
Analysts expect earnings per share to edge 2% higher during 2013, to 15 pence, before trotting higher thereafter — growth of 7% and 6%, to 16 pence and 17 pence, respectively, are anticipated in 2014 and 2015.

I believe that Vodafone Group Plc (ADR) (NASDAQ:VOD) offers decent value for money at current levels. A P/E ratio of 11 for the current year is expected to fall to 10.3 and 9.7, for 2014 and 2015, respectively. These ratings also compare favorably with an average forward earnings multiple of 12 for the wider mobile telecommunications sector.

The article Should You Buy Vodafone? originally appeared on Fool.com and is written by Royston Wild.

Fool contributor Royston Wild has no position in any stocks mentioned. The Motley Fool recommends Vodafone.

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