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Telecom giant Vodafone recommended as ‘buy’

adamlewis
Written By:
adamlewis
Posted:
Updated:
22/07/2016

Graham Spooner, investment research analyst at The Share Centre, picks Vodafone as a ‘buy’ for lower risk investors seeking income, given its attractive dividend yield.

The telecom giant Vodafone today released its first quarter trading update, which reported a 2.2% rise in its adjusted revenue – which measures sales of access charges and roaming but does not count sales of handsets – beating analyst expectations of a 1.8% rise.

At the same time the group reported continued growth in India and the Middle East, while demand for 4G data continued apace with the number of 4G customers doubling to 52.5 million in the quarter and data volumes increasing by 63%.

Spooner said: “Like many companies, the group stated that it is too early to assess Brexit. However, interested investors should note that foreign exchange movements contributed a 1.9% negative impact during the period.”

Despite this, Spooner said the fact the FTSE 100 company is currently sitting on a 5% yield, makes it an attractive stock for income seekers.

“As a result, we recommend Vodafone as a ‘buy’ for investors willing to take on a low to medium level of risk,” he said.