Russ Mould, investment director at AJ Bell, said: “Telecoms outfit Vodafone ticked three boxes with its first-half results as it promised the first dividend increase in seven years, said it would hit the top end of profit and cash flow guidance, and returned to growth in its key German market.
“For years, Vodafone has been a stock market zombie flailing around with little apparent purpose but the transformation programme being delivered by CEO Margherita Della Valle has injected new life into the business.
“Returning to a progressive dividend policy, after the promised dividend hike for the current financial year, would be a key milestone in the company’s recovery after years when the payout has often been cut or kept flat.
“Along with the latest tranche of buybacks, it suggests measures like selling off its Italian and Spanish operations and merging its UK business with Three have delivered tangible benefits along with the operational improvements which have been made in the background.
“One swallow doesn’t make a summer and investors will be looking for Vodafone to build on this strong performance before they are fully convinced that a decade or more of struggle is genuinely behind it.”
Contact details are available to account holders.
Create a free account to get in touch with this expert.