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  1. Introduction
  2. Vodafone PLC analysis
  3. Rest of competitors' dividend growth
  4. Conclusion

Over the years, the global communication landscape has undergone remarkable expansion owing to the presence of accelerating desire to attain global connectivity paced by the technology network. The trend emerges from an increasing desire of timely and accurate information as presently a compelling reality, reshaping and affecting the entire world population no matter the level of connection. Alike other technology and information dependent sectors' posting a remarkable growth, the mobile sector has become a vital sector with an estimated 6.5 billion connection across the globe (Vodafone 20). In this regard, the sector present profitability places participating service providers in the best chance to tap into the accelerating demand to generate seamless revenue by providing communication solutions to the global population yearning for high speed access to information. Outstandingly, since its inception in 1984, Vodafone Group PLC operations have grown beyond the Newbury boundaries to become a leading icon in offering mobile telecommunication services across the globe. Its geographical presence is expanding in tandem with the number of mobile phone users and penetration of smartphones and tablets.

[...] For instance, the company debt to total capital ratio was a positive trend from in 2012. However, of great concern is the current ratio of 0.7458 indicative of the company's huge bills to meet with its current assets. However, the company reprieve is evident in the quick ratio of 0.7314 demonstrating its ability to meet its current obligations (Financial Times Para 4). Although, the share price attained a high of 199+ demonstrating a descent of steady share appreciation, the Surname 7 entire telecom sector is cheaper to invest in given the recent plans to increase the dividend payout across the telecommunication sector. [...]


[...] This is revealed by measuring the mobile service market share in key markets, by March 2012 the company had 35% Uganda, Surname Italy UK Spain South Africa and 21% India. Over time, delivering value and sustained efficiency translates into the company network supporting over 404 million customers, carrying 1 trillion minutes of call and 324 billion texts (Vodafone 33). In addition, operating at scale enables the company to secure substantial cost savings per unit activities through offshoring operations to low cost zones, outsourcing non-core operations to support parties and initiating resource-sharing agreements with other operators (Pieters and Deegan 8). [...]


[...] Currently, Vodafone Group PLC shares are trading at a near of five-year highs backed by yield and a heightened expectation of prospective cash return from the sale of the company interest in Verizon Wireless. The latest drive is critical to the company given its successive years of suffering multibillion pound goodwill impairment write-offs, emerging from previous overpriced acquisitions. Firstly, if the company strikes the deal with VZW, with the estimated value of the shares standing at 130p and 170p for each share, this would be a hit for the Vodafone share. Interestingly, since the value of VZW will take some time before disappearing, it will reward investing in the company shares. [...]


[...] Lastly, Vodafone is linking its fibre service with mobile technology to offer bundled services in the last quarter with multiple deals. For instance, using the modern fibre access in Eurozone markets and rebranding of its enterprise segment from old cable and Wireless to offer converged services makes the company stand a better chance of winning the sea-change as the smartphone finds its penetration across the globe. Conclusively, purchasing the 5000 Vodafone Group PLC is a worthy investment given the company recent performance across the globe and the sprouting growth opportunities for it to tap. [...]


[...] Ordinarily, the company regular dividends are paid out of the free cashflows supported by the continued investment to deliver the annual dividend target. A significant amount is the reward from the strategic push to attain integrated tariffs allowing the company to protect its revenue base while concurrently monetising future data market growth as demonstrated by 43% market share in the Eurozone up from 27% in 2011. In particular, despite the company facing up with a general increase in administrative and selling costs, the company has shaken the hurdles to maintain a consistent and balanced return to its shareholders as revealed below. [...]

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