Vodafone Group Plc (ADR) (VOD)

Cash generaton / defensive pick

.5

high yield

Telecom is a rapidly evolving tech domain that continues to see infrastructure development, even during the world recession. VOD is an international leader, with nice foothold in developing markets. While AT&T has iphone in US, VOD has grabbed this handset in Europe. Some say price wars will drive earnings down after iphone exclusivity ends. I think people will stay with the carrier they prefer if they can also get the phone they want. With a 45% stake in VZ wireless, you get major exposure to the US market as well. Huge dividend is sustainable because of the gynormous free cash flow generated, and this is without a dividend from VZ wireless. I like today's price.

Price to cash flow is 6.37 when converted back to dollars. And the GBP spent much of that time higher than the dollar. Plus, they're in India.

Pretty much based on TMFDeej's 10/20/09 pitch in his CAPS blog. Go take a read.

One of the best diversified companies in the game. They are big in Europe, Asia, and thanks to a large stake in Verizon Wireless they are big in the U.S. as well

great positioning in mature and emerging markets. Great mix. Very innovative and a permanent challenger

among the cheapest of the telecoms by p/b. huge scale of business and a 7% div.

I like the sector right now and the dividend bodes well for attracting investment over the next year or so.

Profit margins are way too high. In most developed markets mobile phone competition is only truly becoming competitive in the last one or two years. Vodafone will do well not to become a utility, never mind maintain it's fantastic margins.

It looks set to see some good growth in emerging markets, but nothing that can balance out the inevitible margin and revenue decline in developed markets.

This is a thumbs down for the long run, not necessarily within the next 12-24 months.

The CEO is also an accountant - On second thoughts, that sentence probably should have been my entire pitch.

2009 World's Most Ethical Companies:
http://ethisphere.com/wme2009/

Like the dividend. Will keep an eye on it for sales and revenue growth.

Good worldwide exposure, well focused emerging market strategy, establishing good cost control measures (cutting $1,4bn over the next two years). Network sharing with Telefonica will result is further cost savings. Dividend yield is good. Dividend funded out of free cash flow.

No the negative side the company's gear ratio is slightly on the high side. Has revenue pressure due to EU regulation (5% cut in interconnection revenue). This loss will compensated through an excellence FMC proposition + steadily growing DSL revenue.

Strong buy!!!! I have a large position in this company.

Dividend Play

revenues up, 7% dividend, mention in Smart Money article.

Over the long term, no matter what the SPY does, dividend aristocrats will always beat. This one is no exception.

top international cell phone carrier operating
Verizon wireless and in the rest of the free world.

Generous dividends should continue and make the wait for the recovery worthwhile. VOD should perform at least as well as the general market here and outperform the EU market in the near term. 40% near-term upside potential to boot.