Vodafone Group

Website: Vodafone Group
Index: FTSE 100
EPIC: VOD
Supersector: Telecommunications
Sector: Mobile Telecommunications
Subsector: Mobile Telecommunications
Market Cap: £22.38B
Payout Frequency: Semi-Annual

Vodafone Group Dividend Analysis and Summary

Key dividend details

Interim dividend per share: 2.25 eurocents (unchanged vs H1 FY25)
Ex-dividend date (Ordinary): 20/11/2025
Ex-dividend date (ADR): 21/11/2025
Record date: 21/11/2025
Payment date: 05/02/2026
Currency: Declared in euros; payable in EUR, GBP or USD. FX set using WM/Ref rates over five business days ending one week before payment.
Policy update: New progressive dividend policy; FY26 DPS expected to increase by ~2.5%. Going forward, the interim will be set at 50% of the prior full-year dividend.
DRIP / currency election deadline: 15/01/2026

Policy and outlook implications

With the interim at 2.25c and a planned ~2.5% increase for FY26, the implied FY26 total DPS ˜ 4.61c (vs 4.50c in FY25), suggesting a final dividend ˜ 2.36c (indicative).
Management targets the upper end of FY26 guidance: Adjusted free cash flow €2.4–€2.6bn and Adjusted EBITDAaL €11.3–€11.6bn, supporting a progressive dividend.
Ongoing share buybacks (€3.0bn completed since May 2024; €1.0bn remaining; new €500m tranche commencing) should reduce share count, modestly improving per-share dividend sustainability.

Dividend sustainability assessment

Cash coverage: An FY26 total cash dividend outlay of roughly ~€1.1bn is implied, covered about 2.1–2.4x by Adjusted FCF guidance (€2.4–€2.6bn). This is a comfortable buffer for a progressive DPS.
Earnings/cash momentum: H1 Adjusted EBITDAaL grew +6.8% organic. H1 Adjusted FCF was an outflow of €0.6bn (improved y/y), but the company historically has H2-weighted cash generation and reiterates upper-end FY26 FCF guidance.
Leverage: Net debt at €25.9bn; against FY26 EBITDAaL guidance implies ~2.2x net debt/EBITDAaL—reasonable for a telecom, though increased vs year-end. Debt reduction is aided by bond buybacks and portfolio actions.
Capital intensity and headwinds: Near-term cash needs include UK network investment and integration (VodafoneThree), and staged Türkiye 5G spectrum payments (~US$627m over three instalments). These are manageable within guidance but reduce discretionary headroom.
Capital allocation balance: The mix of progressive dividend + buybacks signals confidence. If macro or integration cash needs escalate, buybacks are the more flexible lever before reconsidering DPS.

Structural changes and commentary with dividend relevance

UK merger completed (31/05/2025): Creation of VodafoneThree (51% Vodafone/49% CK Hutchison). Expected network/cost synergies underpin the multi-year FCF growth narrative that supports a progressive DPS.
Capex commitments: VodafoneThree plans to invest ~£11bn over 10 years; supplier contracts of ~£2bn over eight years are already in place—this front-loads investment but is intended to drive future cash generation.
Portfolio actions: Smaller M&A (e.g., Romania mobile acquisition; agreed Skaylink deal) and prior disposals (Spain/Italy) tighten focus and funding; tower JV (Vantage) continues to distribute dividends to Vodafone.
Buybacks: €3.0bn completed since May 2024; €1.0bn remaining authorisation with a €500m tranche starting now. This supports per-share metrics, including DPS growth capacity.
Optionality on UK JV stake: Framework for Vodafone to acquire CK Hutchison’s 49% in VodafoneThree (post year 3, subject to conditions) could be settled in cash or Vodafone shares—potential future claim on capital but not a near-term event.

Risks and flags for dividend stability

Operational/regulatory: German competition authority investigation (1&1 tower rollout) could result in a disgorgement order if adverse; outcome uncertain. Regulatory and macro pressures remain key risks.
Integration execution: Realising UK merger synergies at pace is crucial; delays could pressure near-term cash flow while network investments are elevated.
Macro/FX and inflation: Türkiye hyperinflation and FX volatility can distort reported results and cash flows; higher adjusted tax rate (AETR 27.4%) also weighs on cash conversion.
Leverage and liquidity: Net debt rose to €25.9bn; while liquidity is solid, sustained buybacks plus capex could slow de-leveraging if FCF underdelivers.
Working capital timing: H1 outflows and seasonal weighting require strong H2 execution to meet upper-end FCF guidance that underpins DPS growth.

Dividends Used in Calculation:

Ex-Dividend Date	Payment Date	Type	Amount	Currency
21/11/2024	07/02/2025	Interim	2.25¢	EUX
05/06/2025	01/08/2025	Final	2.25¢	EUX

Total (Annual Dividends Per Share): 3.96p (Using exchange rate on 12/12/2025 EUR = £0.87897)

Dividend Yield = Annual Dividends Per Share (3.96p) ÷ Share Price (95.6p) = 4.14%

Ex Dividend Date	Payment Date	Type	Amount	Currency
20/11/2025	05/02/2026	Interim	2.25¢	EUX
05/06/2025	01/08/2025	Final	2.25¢	EUX
21/11/2024	07/02/2025	Interim	2.25¢	EUX
06/06/2024	02/08/2024	Final	4.50¢	EUX
23/11/2023	02/02/2024	Interim	4.50¢	EUX
08/06/2023	04/08/2023	Final	4.50¢	EUX
24/11/2022	03/02/2023	Interim	4.50¢	EUX
01/06/2022	05/08/2022	Final	4.50¢	EUX
25/11/2021	24/02/2022	Interim	4.50¢	EUX
25/11/2021	04/02/2022	Interim	4.50¢	USX
24/06/2021	06/08/2021	Final	4.50¢	EUX
17/12/2020	05/02/2021	Interim	4.50¢	EUX
11/06/2020	07/08/2020	Final	4.50¢	EUX
28/11/2019	07/02/2020	Interim	4.50¢	EUX
06/06/2019	02/08/2019	Final	4.16¢	USX
22/11/2018	01/02/2019	Interim	4.84¢	USX
07/06/2018	03/08/2018	Final	10.23¢	USX
23/11/2017	02/02/2018	Interim	4.84¢	USX
08/06/2017	04/08/2017	Final	10.03¢	USX
24/11/2016	03/02/2017	Interim	4.74¢	USX
09/06/2016	03/08/2016	Final	7.77p	GBX
19/11/2015	03/02/2016	Interim	3.68p	GBX
11/06/2015	05/08/2015	Final	7.62p	GBX
20/11/2014	04/02/2015	Interim	3.60p	GBX
11/06/2014	06/08/2014	Final	7.47p	GBX
20/11/2013	05/02/2014	Interim	3.53p	GBX
12/06/2013	07/08/2013	Final	6.92p	GBX
21/11/2012	06/02/2013	Interim	3.27p	GBX

Year	Interim	Final	Currency	Total	Change
2024	2.250	4.500	EUX	6.750	-25.000
2023	4.500	4.500	EUX	9.000	0.000
2022	4.500	4.500	EUX	9.000	-33.330
2021	9.000	4.500	USX	13.500	50.000
2020	4.500	4.500	EUX	9.000	3.920
2019	4.500	4.160	USX	8.660	-42.530
2018	4.840	10.230	USX	15.070	1.340
2017	4.840	10.030	USX	14.870	18.860
2016	4.740	7.770	GBX	12.510	10.700
2015	3.680	7.620	GBX	11.300	2.070
2014	3.600	7.470	GBX	11.070	5.930
2013	3.530	6.920	GBX	10.450	219.570
2012	3.270		GBX	3.270

Number of Shares:

Payment	Paid	Amount
Next	–	–
Previous	–	–