Sunday, June 15, 2014

In summary, the dividend numbers reported in the days immediately following the Verizon deal failed


When is an 8% dividend hike not an 8% increase? With the dust from the Version deal settling, we clarify the details of Vodafone’s upcoming dividend payment.
Vodafone effectively halved its shares outstanding hotmail sign up on the 24th February Following the reverse split, Vodafone’s dividend for FY 2014 will be reduced by a quarter hotmail sign up Verizon short interest has surged in the last few weeks
The UK market hotmail sign up is in the midst of what is arguably the largest single corporate windfall following Vodafone’s disposal of its stake in Verizon Wireless. The complex hotmail sign up $130bn deal will see £51bn redistributed to current Vodafone shareholders in a mix of cash and shares in Verizon Wireless’s parent company.
Many headlines have focused on this bonanza. We look beyond the acquisition noise and focus VOD’s dividend payments going forward, especially as VOD is one of the most widely held UK income stock.
In summary, the dividend numbers reported in the days immediately following the Verizon deal failed to account for the fact that holders of shares in December will be receiving payment on a smaller number of shares.
Another interesting development is the surge in demand to borrow Verizon shares over the last few weeks to over 4% of the total shares on loan. One has to wonder whether investors were keen to lock in their cash allocation in the run-up to the Return of Value ex-date on Monday.


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