IB Net Payout Yields Model

Vodafone Remains A Better Option Than Verizon

Vodafone (VOD) remains a better investing option compared to Verizon (VZ) or, for that matter, AT&T (T). While Vodafone remains a pure play on international wireless growth, the other two companies are bogged down with wireline operations.

Vodafone is a U.K.-based telecommunication firm, with operations in over 30 countries, and serves more than 400 million customers worldwide. It is a global telecom giant with a significant presence in countries like Germany, Italy and Spain, as well as India, Africa and the Middle East. More importantly, the crown jewel of Verizon, Verizon Wireless, is 45% owned by Vodafone, giving the company a huge investment in the U.S.

Another important distinction is that the U.S. firms continue to throw on huge amounts of debt in order to support their significant dividend payout ratios. Due to stronger stock gains, their dividend yields are now lower than Vodafone's, making the Vodafone stock more attractive.

Read the full article at Seeking Alpha.

Disclosure: Long VOD. Please review the disclaimer page for more details. 


Popular posts from this blog

Ouster: New Day

Carnival: Positive Trajectory

C3.ai: Trough Quarter