Vodafone Group Plc (ADR) (NASDAQ:VOD)

Possible take over, big dividend, low P/E

M* Dividend Harvest pick

The second largest mobile company in the world, after China Mobile. They have had a growth of 100 million customers from 2011 to 2012 and is therefore close to half a billion customers. They are present in something like half of the world.

I imagine that Vodafone sooner or later will provide some sort of international subscription, that will be attractive to many people (business and travelling) and be hard to compete with for other mobile operators.

The need for mobile voice and data is growing. It provides a comfort that people do not want to be without once they have become accustomed to it.

They have a low price / book ratio of 1.3, and they provide a good dividend of approx. 3.5%.

So I consider this a good growth stock with a nice dividend.

I personally used their service in Germany and Dominican Republic on vacations, buying a local sim, and I was very satisfied by their 3G coverage. The service in Germany was very good. The service in Dominican Republic was bad to put it mildly, but that's the standard outside the tourist resorts.

Deej has a nice write up on the subject here: http://caps.fool.com/Blogs/after-all-these-years/791463

Basically the thought is that VOD owns a large stake in Verizon wireless and the market is not recognizing this. Add into the mix that Verizon currently pays VOD a nice dividend annually for their Verizon wireless stake and that this is a David einhorn pick and the odds are in your favor!

Picked up some shares at 26 and will hold until this thesis plays out or things drastically change. You get a pretty nice dividend to sit and wait as well so no reason to hurry and sell this one.

VOD has excellent assets across the global including some high margin divisions in Eastern Europe and Africa. As a matter of fact, the world's top money transfer service, MPesa, headquartered out of Nairobi Kenya is owned by Vodafone. This service is a money printing machine with 65% market share.

That said, VOD's high operating costs arising from their Western European operations has been a dampener on the company's performance. Add to that the fact that Western Europe as a market has performed very poorly in the last 5 years or so leaves you with a stock that is grossly underperforming relative to the benchmark index.

I don't expect their performance to improve until the European economy improves.

high div commitment. income is diversified presently by Verizon ownership and European footprint.

Naj

World's second largest wireless carrier, offering regionally diversified high single-digit growth.PE = 17, yield 5.4%.

100

It's cheap and has a ton of technical support at 26. It's going to take a lot of bad news in Europe to hold VOD down.

Even though growth prospects do not seem as promising because competition in the industry is so tough this stock will fare well because they are heavily invested in other telecom. companies like verizon. Synergies. Plus investor confidence in dividend and cheap price will drive market value up to where it rightfully should be.

A dividend yield of 7.37% as of today and a relatively narrow trading range. Looks like a good stock to own.

Div

Dividend will keep people holding onto shares. Not a lot of room for growth in the wireless market.

VOD is a telecom ace with international scope. They are wired in with VZ here, have lucrative arrangements in Europe, and are penetrating India, Turkey, and African areas. To top it off, they have a 4% dividend as well.

Dividend.

Well managed company and with the explosion in use of mobile devices will continue to generate lots of cash. Has a great yield too.

Verizon and AT&T are 800 lb gorillas

Global company, third world market exposure. Nice dividend.