{"id":270,"date":"2013-09-10T06:49:39","date_gmt":"2013-09-10T06:49:39","guid":{"rendered":"http:\/\/www.asadkarim.co.uk\/?p=270"},"modified":"2013-09-10T06:49:39","modified_gmt":"2013-09-10T06:49:39","slug":"dividendscalculated-costs","status":"publish","type":"post","link":"https:\/\/www.asadkarim.co.uk\/?p=270","title":{"rendered":"Dividends:Calculated Costs"},"content":{"rendered":"<p>Vodafone PLC\u00a0is selling its 45% shareholding in Verizon Wireless, and later in the year will get about <strong>\u00a384 billion<\/strong> (US$130 billion)<\/p>\n<p>[<a title=\"Vodafone Press Release\" href=\"http:\/\/www.vodafone.com\/content\/index\/media\/group_press_releases\/2013\/vodafone_to_realiseus130billionforits45interestinverizonwireless.yes.html\" target=\"_blank\">http:\/\/www.vodafone.com\/content\/index\/media\/group_press_releases\/2013\/vodafone_to_realiseus130billionforits45interestinverizonwireless.yes.html<\/a>]<\/p>\n<p>A lot of this money will be returned to Vodafone shareholders via a special dividend. This got me thinking about the Vodafone dividend.<\/p>\n<p>Today, owning shares in Vodafone, is quite handy in these times of <strong>0.5%<\/strong> interest rates. The yield on Vodafone stock is about <strong>4.8%<\/strong>.<br \/>\n[<a title=\"Vodafone Financials\" href=\"http:\/\/www.shareshop.hsbc.co.uk\/shareshop\/security.cgi?csi=10097\" target=\"_blank\">http:\/\/www.shareshop.hsbc.co.uk\/shareshop\/security.cgi?csi=10097<\/a>]<\/p>\n<p>So <strong>\u00a3100<\/strong> invested in Vodafone stock today will earn <strong>\u00a34.80<\/strong> a year.<\/p>\n<p>So what is the cost of the dividend to shareholders from Vodafone ?<\/p>\n<p>In 2013, Vodafone has paid 2 dividends:<\/p>\n<p>7 August 2013 Final dividend 2013 payment of <strong>6.92p<\/strong><\/p>\n<p>6 February 2013 Interim dividend 2013 payment of <strong>3.27p<\/strong><\/p>\n<p>That is <strong>10.19p<\/strong> for the year. [<strong>\u00a30.1019<\/strong>]<\/p>\n<p>Now, the total number of voting right shares in Vodafone is <strong>48,450,408,385<\/strong>.<\/p>\n<p>Thus, the cash to fund the Vodafone 2013 dividend is <strong>48,450,408,385<\/strong> x <strong>\u00a30.1019<\/strong><\/p>\n<p>= <strong>\u00a34,937,096,614. <\/strong>YES, <strong>\u00a34,937 Million<\/strong> = <strong>\u00a34.937 Billion.<\/strong><\/p>\n<p>To pay the 2 dividends this year, Vodafone needed <strong>\u00a34.937 Billion<\/strong> in cash to meet this payment.<br \/>\nOur pension funds need companies like this, that <strong>reward long term investors<\/strong>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Vodafone PLC\u00a0is selling its 45% shareholding in Verizon Wireless, and later in the year will get about \u00a384 billion (US$130 billion) [http:\/\/www.vodafone.com\/content\/index\/media\/group_press_releases\/2013\/vodafone_to_realiseus130billionforits45interestinverizonwireless.yes.html] A lot of this money will be returned to Vodafone shareholders via a special dividend. This got me thinking about the Vodafone dividend. Today, owning shares in Vodafone, is quite handy in these [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-270","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"_links":{"self":[{"href":"https:\/\/www.asadkarim.co.uk\/index.php?rest_route=\/wp\/v2\/posts\/270","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.asadkarim.co.uk\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.asadkarim.co.uk\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.asadkarim.co.uk\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.asadkarim.co.uk\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=270"}],"version-history":[{"count":1,"href":"https:\/\/www.asadkarim.co.uk\/index.php?rest_route=\/wp\/v2\/posts\/270\/revisions"}],"predecessor-version":[{"id":271,"href":"https:\/\/www.asadkarim.co.uk\/index.php?rest_route=\/wp\/v2\/posts\/270\/revisions\/271"}],"wp:attachment":[{"href":"https:\/\/www.asadkarim.co.uk\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=270"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.asadkarim.co.uk\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=270"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.asadkarim.co.uk\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=270"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}