This week my Safari portfolio seeks a company in the communication services sector.

That sector has companies that connect us electronically in either of two ways: telecommunications, or pay TV. 

Today I’m reviewing a telecom services company named Vodacom Group Limited. It’s trading ticker symbol is VDMCY. 

Vodacom Group Ltd provides communications products and services including voice, messaging, converged services, broadband, data connectivity, mobile financial services and value-added services to its consumer, business, and enterprise customers in South Africa and internationally.

The company was founded in 1993 and is headquartered in Midrand, South Africa. Vodacom Group Limited operates as a subsidiary of Vodafone Investments SA (Pty) Limited.

I use three primary keys to gauge dividend equities or funds like Vodacom Group (VDMCY): 

(1) Price

(2) Dividends

(3) Returns

After those three, I’ll use four more keys to unlock an equity or fund in which to invest.

The first three keys, though, best test whether a company has made, is making, and will make money. 

VDMCY Price

Vodacom Group’s price at yesterday’s market close was $13.09 per share. The company has made money for investors. A year ago its price was $11.10. So it’s a gained  $1.99 per share in the past year.  If VDMCY does as well in 2018 its price will increase from $13.09 to $15.08 per share, or about 15%.

VDMCY Dividends

Vodacom Group’s most recent variable semi-annual dividend was $0.2872 declared in November, and paid out December 11th.  

The annual dividend for 2018 is estimated as $0.57 payable in July and December unequal portions.

The yield from that $0.57 dividend will be 4.35% at yesterday’s $13.09 price.

Gains For VDMCY?

Adding the $0.57 dividend to my $1.99 estimated year over year price gain shows a potential $2.56 gross gain for the coming year.  

Now we subtract the cost to trade Vodacom shares. 

Print Friendly, PDF & Email