Vodafone Stock Binary Options Brokers
The company was founded on July 17 1984 and has its headquarters in London.
Vodafone stock trades on the London Stock Exchange and on the NASDAQ under the ticker symbol VOD.
Why trade Vodafone Stock
Impressive dividend yield
Vodafone is seen as a dividend stock with a dividend policy that highly favors its stakeholders. Stocks currently have a yield of about 4.4% though the company’s management has announced an upcoming divided rise. Even at 4.4%, Vodafone’s dividend yield is at par with other industry players including Verizon.
Strong cash flow position
In its Q4 report, Vodafone announced a robust cash flow of $1.7 billion. The company has indeed spent huge sums on capital expenditure to expand 3G and 4G infrastructure. However, Vodafone has still managed to maintain a positive cash flow, a trend that is expected in 2015 and in 2016 as well.
Free cash flow is expected to rise when the infrastructure expansion projects are completed. This is because the annual capital expenditure will be lower, thereby freeing cash flow.
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Type of available binary options for Vodafone Stock
The common contract types for trading Vodafone stock are:
· Basic Call/Put options: Predict if the price of Vodafone stock will move up or down before the expiry time.
· Touch options: Predict whether the price of Vodafone stock will touch the given strike price before the expiration time.
· In/Out: Predict whether the price of Vodafone stock will stay within a range of two strike prices.
Possible signals for Vodafone Stock
Vodafone announced its Q4 earnings and reported a 13.5% increase in earnings to $16.52 billion. This figure was much higher than market predictions of GBP 10.40 billion.
In its Q4 report, Vodafone’s Europe earnings fell by 2.7% compared with a decline of 9.6% in the same period in 2014. This can be attributed to improvements in the European economy overall.
Vodafone American Depository Receipt (ADR) shares are down by 15.6% over the last year, to trade at $34.76.
The Bank of America downgraded Vodafone ADRs from Neutral to Underperform. However, JP Morgan Chase rated Vodafone shares as Overweight.
Vodafone is in early talks Altice, the owner of cable operator Cabovisao to take over the operator. This possible acquisition will have positive or negative impact on Vodafone stock depending on the outcomes.
Factors Influencing Price of Vodafone Stock
As a worldwide telecoms operator, Vodafone’s performance is subject to the political, social and economic trends in its various markets.
Economic fluctuations in the European market continue to impact Vodafone’s revenue growth. Economic improvements in important European markets would benefit Vodafone earnings and its stock prices.
The growth of 3G and 4G customers in emerging economies and the increase in data usage in developed and emerging markets will influence Vodafone’s expansion and earning capacity and therefore, its stock performance.