Why Vodafone Is Poised to Keep Rallying

Updated

Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, U.K. mobile giant Vodafone Group has earned a coveted five-star ranking.

With that in mind, let's take a closer look at Vodafone and see what CAPS investors are saying about the stock right now.

Vodafonefacts

Headquarters (founded)

Newbury, U.K. (1984)

Market Cap

$141.6 billion

Industry

Wireless telecommunication services

Trailing-12-Month Revenue

$71.8 billion

Management

CEO Vittorio Colao (since 2008)

CFO Andrew Halford (since 2005)

Return on Equity (average, past 3 years)

6.2%

Cash/Debt

$12.2 billion / $57.1 billion

Dividend Yield

3.5%

Competitors

AT&T

France Telecom

Telefonica


Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 95% of the1,331 members who have rated Vodafone believe the stock will outperform the S&P 500 going forward.

Just yesterday, one of those bulls, Gainster, succinctly summed up the Vodafone bull case for our community:

The need for mobile voice and data is growing. It provides a comfort that people do not want to be without once they have become accustomed to it.

They have a low price / book ratio of 1.3, and they provide a good [dividend yield] of approx. 3.5%.

So I consider this a good growth stock with a nice dividend.

I personally used their service in Germany and Dominican Republic on vacations, buying a local sim, and I was very satisfied by their 3G coverage. The service in Germany was very good. The service in Dominican Republic was bad to put it mildly, but that's the standard outside the tourist resorts.

If you want market-thumping returns, you need to put together the best portfolio you can. Of course, despite a strong five-star rating, Vodafone may not be your top choice.

If that's the case, we've compiled a special free report for investors called "The 3 Dow Stocks Dividend Investors Need," which uncovers a few other juicy income opportunities. The report is 100% free, but it won't be around forever, so click here to access it now.

Want to see how well (or not so well) the stocks in this series are performing? Follow the TrackPoisedTo CAPS account.

The article Why Vodafone Is Poised to Keep Rallying originally appeared on Fool.com.

Fool contributor Brian Pacampara has no position in any stocks mentioned. The Motley Fool recommends France Telecom and Vodafone. The Motley Fool owns shares of France Telecom. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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