The bull case for Vodafone Group
Five-starred on CAPS, European telecom giant Vodafone boasts a $128.8 billion market cap — and a 5.8% dividend yield. Investors like these numbers for different reasons, with CAPS All-Star jbolley praising the company’s “high div commitment,” while CAPS member Fish08 likes the idea of owning the “world’s second largest wireless carrier, offering regionally diversified high single-digit growth.”
CAV23 predicts: “Synergies. Plus investor confidence in dividend and cheap price will drive market value up to where it rightfully should be.”
Granted, some investors may be frightened away from Vodafone by the fact that currently, under GAAP accounting, the stock looks unprofitable — but that may be a mistake. While it’s true that Vodafone’s income statement currently shows the company with a $2.7 billion trailing loss, Vodafone’s cash-flow statement confirms that, in fact, the company generated $11.5 billion in real cash profits over the past year — and has a long history of generating similarly robust cash profits.
The article 5 Superball Stocks originally appeared on Fool.com and is written by Rich Smith.
Fool contributor Rich Smith owns shares of Apple. You can find him on CAPS, publicly pontificating under the handle TMFDitty, where he’s currently ranked No. 339 out of more than 180,000 members.
The Motley Fool recommends Apple and Vodafone and owns shares of Apple and Dendreon.
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