4-Star Stocks Poised to Pop: Vodafone

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Based on the aggregated intelligence of 140,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, U.K. mobile giant Vodafone Group (NYSE: VOD) has earned a respected four-star ranking.

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

Vodafone facts

Headquarters (Founded)

Newbury, England (1984)

Market Cap

$116.7 billion

Industry

Wireless communications

Trailing-12-Month Revenue

$58.9 billion

Management

CEO Vittorio Colao (since 2008)
CFO Andrew Halford (since 2005)

Return on Equity (Average, Past 3 Years)

2.2%

Cash/Debt

$7 billion / $59.4 billion

Dividend Yield

5.7%

Competitors

AT&T (NYSE: T)
Telefonica (NYSE: TEF)

CAPS Members Bullish on VOD Also Bullish on

Apple (Nasdaq: AAPL)

CAPS Members Bearish on VOD Also Bearish on

Dell (Nasdaq: DELL)
Microsoft (Nasdaq: MSFT)

Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.

On CAPS, 92.8% of the 639 members who have rated Vodafone believe the stock will outperform the S&P 500 going forward. These bulls include hendrixtrader and All-Star PsychoDr, who is ranked in the top 5% of our community.

One week ago, hendrixtrader tapped the stock as an interesting international call: "One of the best diversified companies in the game. They are big in Europe [and] Asia, and thanks to a large stake in [Verizon's (NYSE: VZ)] Verizon Wireless they are big in the U.S. as well."

In a pitch from three days later, PsychoDr also encouraged Fools to answer the Vodafone:

Telecom is a rapidly evolving tech domain that continues to see infrastructure development, even during the world recession. [Vodafone] is an international leader, with nice foothold in developing markets. While AT&T has iphone in US, [Vodafone] has grabbed this handset in Europe. ... With a 45% stake in [Verizon Wireless], you get major exposure to the US market as well. Huge dividend is sustainable because of the gynormous free cash flow generated.

What do you think about Vodafone, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. The CAPS community is waiting to hear your opinions. CAPS is 100% free, so get started!  

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Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Dell and Microsoft are Motley Fool Inside Value picks, and Apple is a selection of Stock Advisor. The Fool's disclosure policy always gets a perfect score.

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On October 27, 2009, at 10:12 AM, thorthedog wrote:

    I've seen several positive write-ups on VOD that mention its sustainable dividend, but its payout ration is 166. Can someone explain?

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