We’re not at the end of the month yet, but I have already decided to make a big move this month for July. I have liquidated some of my saving because I decided that I will not be buying another rental property, since I am working oversea it’s hard to find people to manage and deal with the paperwork. So I will put a hold on that goal for now, I also decided to liquidate some of my emergency fund because I don’t need that large of amount. I still have at least 3 - 6 month in my emergency fund.
I have lower my emergency fund from $40,000 to $20,000 and decided to withdraw my $6,500 from my rental house funds. I will invest it in the market and I did mention in my June net worth that I will be building up my dividend portfolio. I will still build up my core portfolio which consists of index funds to keep my asset allocation in line. I will start to deviate into buying larger cap dividend stock.
I recently made a purchase in a company called Vodafone (VOD). I have been researching and made a decision to buy some since it’s currently cheap. Vodafone (VOD) is a European telecommunication company that is like a Verizon company back in the states. Vodafone share have been beaten up lately due to expected sale weakness. They expect earnings to decline for this year.
Purchase price: $32.26
Shares bought: 307
Current dividend yield: 7.60%
52 week Range: $29.58 - $42.15
This seem to be a bargain, I believe that this will be a good long term investment. They recently acquire “Ono” which is the largest network telecommunication provider for Spain and expanding throughout Europe. They’re currently working on “Project Spring” which deploying 4G network coverage in Europe that will cover about 91% outdoor population by March 2016. Vodafone currently has a healthy cash balance after selling their 45% interest in Verizon communication for $130 billion.
According to Yahoo Finance VOD has
P/E of 0.87
Forward P/E of 18.49
Total Cash: 24.1B
Total Debt: 50.10B
Project spring will require a lot of capital expense but I still believe that VOD will be able to turn around and make a profit and we will have to wait and see later on. They’re building out their 4G network and fiber optic throughout Europe. Also they’re beginning to tap into emerging market like Africa, India, Spain and more.
This is my own personal opinion, I am long VOD.
Is there a stock that is on your watch list or plan on purchasing?