Should I buy Vodafone stock in 2025?
Is Vodafone stock a buy right now?
As of early May 2025, Vodafone Group Plc shares are priced at around 72.96 GBX on the London Stock Exchange, with a recent daily trading volume consistently near 22 million shares—a robust sign of active market participation. The company is undergoing a notable transformation under CEO Margherita Della Valle, marked by the streamlining of its portfolio, including the anticipated sale of its Italian operations and the major UK merger with Three, both set to complete imminently. These developments appear manageable for a business of Vodafone’s scale, supporting its longstanding position as a defensive pillar in the telecommunications sector. Constructive market sentiment is reflected in technical indicators, with bullish signals prevailing and support from a solid 7.50% dividend yield, appealing to income-focused investors. Vodafone’s broad exposure across Europe and Africa, combined with ongoing operational optimisations and investments in AI-driven customer service, has rekindled confidence in its growth prospects. In this context, the consensus of over 32 national and international banks has set a target price of approximately 95 GBX, underscoring ongoing institutional conviction as Vodafone focuses on innovation and resilience in an evolving sector landscape. For investors seeking stable returns with strategic upside, Vodafone continues to warrant close attention.
- Strong 7.50% dividend yield, enhancing appeal for income-seeking investors
- Ongoing transformation strategy targeting operational efficiency and growth
- Low volatility (Beta 0.45) indicating defensive market characteristics
- Expanding digital and IoT services, particularly in high-growth African markets
- Positive service revenue growth and strategic partnerships with major tech firms
- Execution of large-scale transformation may present integration challenges
- Competitive pressures remain acute in mature European telecoms markets
- What is Vodafone?
- How much is Vodafone stock?
- Our full analysis on Vodafone </b>stock
- How to buy Vodafone stock in United Kingdom?
- Our 7 tips for buying Vodafone stock
- The latest news about Vodafone
- FAQ
Why trust HelloSafe?
At HelloSafe, our expert has been closely monitoring Vodafone's performance for more than three years. Each month, hundreds of thousands of users across the United Kingdom rely on us to interpret market trends and pinpoint the best investment opportunities. Our analyses are intended for informational purposes only and should not be regarded as investment advice. In line with our ethical charter, we have never been, and will never be, paid by Vodafone.
What is Vodafone?
| Indicator | Value | Analysis |
|---|---|---|
| 🏳️ Nationality | United Kingdom | Headquartered in the UK, Vodafone maintains strong European and African market presence. |
| 💼 Market | London Stock Exchange (LSE: VOD) | Listed on the UK's main exchange, ensuring ample liquidity and transparency for investors. |
| 🏛️ ISIN code | GB00BH4HKS39 | The ISIN uniquely identifies Vodafone shares for global trading and settlement. |
| 👤 CEO | Margherita Della Valle | Appointed in April 2023, leading strategic transformation and operational efficiency drive. |
| 🏢 Market cap | £18.36 billion | Reflects Vodafone’s status as a large-cap telecom, with global scale but valuing transformation. |
| 📈 Revenue | $37.01 billion (TTM) | Significant revenue base, highlighting scale; ongoing growth driven by European and African ops. |
| 💹 EBITDA | €13.3 billion (FY24) | Strong EBITDA, supporting investments and dividend, but affected by portfolio repositioning. |
| 📊 P/E Ratio (Price/Earnings) | 9.71 | Low P/E ratio signals attractive valuation but reflects transformation risks and market caution. |
How much is Vodafone stock?
The price of Vodafone stock is falling this week. As of today, Vodafone trades at 72.96 GBX, marking a 1.08% decrease in the last 24 hours and a modest weekly loss. The company’s market capitalisation stands at £18.36 billion, with an average three-month trading volume that reflects steady investor interest. Vodafone currently posts a P/E ratio of 9.71 and offers an attractive dividend yield of 7.50%, while its stock beta of 0.45 indicates lower-than-average market volatility. These figures suggest that Vodafone remains a relatively stable choice, well-suited for those seeking dependable returns despite short-term movements.
Compare the best brokers in the UK!Compare brokersOur full analysis on Vodafone stock
Having rigorously reviewed Vodafone Group Plc’s latest financial disclosures, along with the stock’s trajectory over the past three years, our proprietary approach—combining quantitative market indicators, technical pattern signals, peer benchmarking, and multifactor analysis—offers a uniquely comprehensive perspective. By merging evolving financial metrics, up-to-the-minute market data, and fundamental company developments, we can distil the most promising themes underpinning Vodafone’s equity narrative. So, why might Vodafone stock once again become a strategic entry point into the global telecommunications and digital infrastructure sector in 2025?
Recent Performance and Market Context
Vodafone shares are, as of 3 May 2025, trading at 72.96 GBX on the London Stock Exchange—a price that sits mid-way within its 52-week range of 62.40 to 79.50 GBX. This encapsulates a period of relative stability, punctuated by measured advances amid bouts of sector-specific volatility. Over the three-year horizon, Vodafone has faced the dual headwinds of challenging European markets and necessary business realignments, but these have often been counterbalanced by strategic advances in Africa and digital services.
- Profitable Asset Disposals: The sale of Vodafone’s Italian operation and a further stake in Vantage Towers signals the company’s proactive approach to portfolio optimisation and capital recycling.
- UK Merger with Three: The anticipated completion of Vodafone’s merger with Three UK (expected early 2025) is poised to redefine its domestic scale and support enhanced 5G infrastructure rollout.
- Dividend Commitment: Vodafone’s 7.50% dividend yield positions it attractively amid prevailing low-yield environments, enhancing defensive investor appeal.
- Stable Macro Backdrop: The European and broader global telecom sectors have benefitted from stabilised inflation, renewed infrastructure spending, and supportive policy frameworks, strengthening sectoral fundamentals and investor confidence.
Vodafone’s resilient operational performance within this context, alongside an ambitious transformation programme, underpins its potential for a renewed rally.
Technical Analysis
A technical review of Vodafone stock delivers a cautiously positive bias, supported by various key indicators as outlined below:
- Relative Strength Index (RSI 14): Standing at 61.89, RSI signals neutral-to-marginal overbought conditions. While not yet at a level to suggest technical excess, it reflects a stock with growing buy interest, but room for further gains.
- MACD: The MACD sits at 0.16, indicating mild selling pressure but not at levels inconsistent with ongoing accumulation phases during early-stage uptrends.
- Moving Averages: With all major short, medium, and long-term moving averages (20-, 50-, 100-, 200-day) remaining beneath the current stock price, classic bullish crossovers validate an improving technical structure.
- Support and Resistance: Robust support is seen at 71.50 GBX (or $9.48 ADR), providing a cushion for downside risk. Meanwhile, resistance at 74.50 GBX ($9.82 ADR) will be a key pivot; a sustained move above this threshold could unlock further upside.
- Momentum Structure: With a preponderance of bullish over bearish technical signals (15:5 ratio), the prevailing technical sentiment embraces ongoing upward momentum, especially if upcoming catalysts (discussed below) catalyse new highs.
Should accumulation continue above key moving averages, and if price consolidates above support, the stock may well be set for a renewed medium-term uptrend.
Fundamental Analysis
Vodafone’s fundamental proposition in 2025 appears notably attractive—characterised by solid revenue growth, an explicit valuation gap, and profound ongoing transformation.
| Metric | Value | Highlights |
|---|---|---|
| Revenue | $37.01 billion (TTM) | 5.2% y/y group service revenue growth in Q3 FY25 |
| Operating Profit | Declined sharply last year | Due to one-off restructuring; transitioning to margin restoration |
| P/E Ratio | 9.71 | Discounted to sector and market averages (FTSE 100 14–15) |
| Dividend Yield | 7.50% annually | Among highest in sector |
| Beta | 0.45 | Lower historical volatility vs market |
Structural Strengths:
- Innovation: Vodafone's strategic focus on next-generation connectivity (5G, IoT, cloud services) aligns with global trends in digital transformation, and recent partnerships with hyperscalers (Microsoft, Google) fortify its B2B proposition.
- Market Share: The group retains top-tier market positions across Europe and Africa, with deep brand equity and millions of loyal customers.
- Transformation: CEO Della Valle’s multitiered transformation strategy—including operational streamlining, digitalisation, and focus on growth markets—is designed to unlock trapped shareholder value and drive sustainable earnings growth.
With its combination of attractive valuation, visible operational momentum, and market-leading brand, Vodafone’s fundamentals appear increasingly aligned for a multi-year phase of value recognition.
Volume and Liquidity
Analysis of Vodafone’s trading volume and float highlights favourable liquidity conditions—an enabling factor for both institutional and retail market participants:
- Sustained Volume: Recent trading activity has averaged robust daily volumes, underlining pronounced market interest and strong two-way flow even in relatively constrained market sessions. This liquidity fosters efficient price discovery and smooth order execution.
- Free Float and Index Profile: Vodafone’s sizable free float ensures broad inclusion in key benchmark indices and ETF baskets, underpinning structural investor demand and enhancing valuation resilience.
These features combine to create a marketplace where enthusiastic participation and orderly pricing dynamics can coexist, supporting the case for a dynamic yet robust valuation regime.
Catalysts and Positive Outlook
Vodafone’s investment appeal is expected to be fuelled by a powerful array of forthcoming catalysts and sector tailwinds:
- UK Merger with Three: The anticipated closure of Vodafone’s UK merger with Three initiates an enhanced market structure, unlocking scale economies, spectrum assets, and a strengthened 5G platform—expected to be earnings accretive and structurally transformative.
- Italian Operations Sale: The divestment of Vodafone Italy not only releases significant capital for reinvestment and deleveraging, but also sharpens strategic focus on growth markets and digital services.
- Portfolio Rationalisation: Recent sales of interests in Vantage Towers and Indus Towers inject over €3 billion in cash, facilitating financial flexibility, debt management, or further strategic investment.
- Digital and Enterprise Solutions: The Vodafone Business segment’s rapid organic revenue growth (5.4% y/y) and expanding digital partnerships (e.g., with Mastercard) establish a robust runway for future recurring revenue streams.
- ESG and Sustainability: Ongoing commitment to ESG goals—renewable energy initiatives, digital inclusion projects—strengthens Vodafone’s appeal to sustainability-focused capital pools and supports long-term brand equity.
- Macroeconomic Support: The normalisation of inflation, stabilising interest rates, and renewed public commitments to infrastructure enhancement across Europe and Africa represent a constructive external backdrop.
With multiple operational and sectoral catalysts ahead—including the publication of full-year results (20 May 2025), Q1 FY26 trading update, and AGM—Vodafone is well positioned for a phase of positive re-rating.
Investment Strategies
Vodafone’s strategic positioning and technical structure suggest it may appeal across time horizons, with differentiated arguments for each:
| Time Horizon | Key Points |
|---|---|
| Short-Term (1–3 months) |
|
| Medium-Term (3–12 months) |
|
| Long-Term (12+ months) |
|
- The current consolidation above core support (71.50 GBX) offers an attractive “risk-defined” entry point.
- Imminent catalysts—FY25 results, UK merger finalisation—could deliver near-term momentum and price inflection.
- Cost transformation benefits and initial merger synergies are likely to be reflected progressively in margin recovery and earnings upgrades.
- Dividend seasonality and “yield capture” strategies complement broader shareholder return objectives.
- Strategic alignment with global trends in mobile, cloud, and digital infrastructure expansion.
- Ongoing investments in Africa and business digitalisation offer a credible multi-year growth “engine.”
- Dividend sustainability, underpinned by robust cash flow, supports income compounding.
Whichever the selective strategy, Vodafone’s current price action, forward-looking catalysts, and intrinsic value case may reward patient, conviction-driven investors.
Is it the Right Time to Buy Vodafone?
- Vodafone trades at a compelling valuation, with a single-digit P/E ratio and a sector-leading 7.50% dividend yield—offering both income and value attributes rarely found together in large-cap equities.
- The company’s transformation under CEO Della Valle is materially simplifying operations, optimising capital allocation, and refreshing its competitive proposition, especially in high-potential business and African segments.
- Technical signals reinforce a bias toward a developing bullish regime, with robust support levels below and ample pending catalysts to drive momentum.
- Strong liquidity, enduring brand presence, and favourable macro tailwinds create a fertile platform for potential outperformance in 2025 and beyond.
In conclusion, Vodafone appears to represent an excellent opportunity for investors seeking a blend of yield, value, and exposure to the digital infrastructure theme. As the company transitions through its next phase—bolstered by operational innovation and balance sheet clarity—the stock’s upside potential is becoming increasingly tangible. For those seeking to participate in the future of global connectivity through a disciplined and strategically sound avenue, Vodafone certainly deserves renewed attention at current levels.
How to buy Vodafone stock in United Kingdom?
Buying Vodafone stock online has never been easier or safer for UK investors. Thanks to strict regulation by the Financial Conduct Authority (FCA), leading online brokers offer secure platforms for purchasing shares from your computer or smartphone. There are two main ways to invest: buying Vodafone shares outright (“spot” or cash buying), or speculating on price movements through Contracts for Difference (CFDs). Each method has its unique advantages and risks. For a detailed comparison of top brokers offering Vodafone shares, see our broker comparison further down this page.
Spot buying
Buying Vodafone stock for cash means you become a direct shareholder of Vodafone Group Plc. You own the shares in your name and may benefit from dividends and voting rights. UK brokers typically charge a fixed commission per order, often ranging from £1 to £10, depending on the platform.
Example
If the Vodafone share price is 72.96 GBX (or £0.7296 per share), and you invest £800 (roughly $1,000), you can buy about 1,094 shares (excluding fractions and before fees). With a typical flat commission of £4 per trade, your total investment plus costs would be around £804.
✔️ Gain scenario:
If Vodafone’s share price rises by 10% to 80.25 GBX per share, your shares would now be worth £880 (1,094 × £0.8025).
Result: +£80 gross gain — a 10% increase on your initial investment (excluding commissions and taxes).
Trading via CFD
CFDs (Contracts for Difference) allow you to speculate on Vodafone’s share price without owning the actual shares. This flexible derivative gives exposure to both rising (buy/“long”) and falling (sell/“short”) prices and enables the use of leverage. With CFDs, costs typically include the spread (the difference between buy and sell price) and, if you keep positions open overnight, a daily financing fee. These costs vary by broker and current market conditions.
Example
You open a CFD position on Vodafone with a £800 ($1,000) margin and 5x leverage. This gives you a market exposure of £4,000 to Vodafone shares.
✔️ Gain scenario:
If Vodafone’s share price rises by 8%, your position earns 8% × 5 = 40%.
Result: +£320 gain on your £800 initial margin (before spread and overnight fees).
Final advice
Before deciding how to invest in Vodafone, it’s important to compare broker fees, trading conditions, and platform features. Each method—spot buying or CFD trading—suits a different investment style and risk appetite. Investors seeking long-term ownership and dividends may prefer direct share purchases, while those looking for flexibility and leverage might opt for CFDs. The optimal choice depends on your financial goals and experience. For a full comparison of trusted UK brokers offering Vodafone, consult our table below.
Is EightCap reliable?
Yes, EightCap is a trusted platform, regulated by the FCA (UK) and the ASIC (Australia). Since 2009, it has ensured the security of funds with segregated accounts and a rigorously regulated trading environment. If you are looking for a reliable broker to get started, EightCap is a safe platform, recognised in the industry.
Why choose EightCap?
EightCap combines performance and flexibility. The platform offers a wide selection of assets and tools like TradingView, perfect for demanding traders. Are you a novice? No problem: its demo accounts and innovative integrations like TradingView make learning intuitive and efficient.
What are the fees at EightCap?
At EightCap, fees depend on the account you choose: Raw accounts display spreads starting from 0 pips, with a commission of $3.5 per lot. Standard accounts, on the other hand, have slightly higher spreads but no commissions. No fees on deposits or withdrawals, for clear and controlled costs.
Who is EightCap for?
Whether you are a beginner or an experienced trader, EightCap is designed to meet your needs. Are you starting out? Take advantage of guides and demo accounts to understand the basics. Are you more advanced? Tools like TradingView and competitive spreads will allow you to go further in your strategies.
Is it easy to withdraw your money from EightCap?
Withdrawing your winnings on EightCap is simple and fast. Requests are processed within 24 hours and you can use flexible options such as bank transfer, cards or electronic wallets. Security and speed are at the heart of the service.
Is EightCap reliable?
Yes, EightCap is a trusted platform, regulated by the FCA (UK) and the ASIC (Australia). Since 2009, it has ensured the security of funds with segregated accounts and a rigorously regulated trading environment. If you are looking for a reliable broker to get started, EightCap is a safe platform, recognised in the industry.
Why choose EightCap?
EightCap combines performance and flexibility. The platform offers a wide selection of assets and tools like TradingView, perfect for demanding traders. Are you a novice? No problem: its demo accounts and innovative integrations like TradingView make learning intuitive and efficient.
What are the fees at EightCap?
At EightCap, fees depend on the account you choose: Raw accounts display spreads starting from 0 pips, with a commission of $3.5 per lot. Standard accounts, on the other hand, have slightly higher spreads but no commissions. No fees on deposits or withdrawals, for clear and controlled costs.
Who is EightCap for?
Whether you are a beginner or an experienced trader, EightCap is designed to meet your needs. Are you starting out? Take advantage of guides and demo accounts to understand the basics. Are you more advanced? Tools like TradingView and competitive spreads will allow you to go further in your strategies.
Is it easy to withdraw your money from EightCap?
Withdrawing your winnings on EightCap is simple and fast. Requests are processed within 24 hours and you can use flexible options such as bank transfer, cards or electronic wallets. Security and speed are at the heart of the service.
Is eToro reliable?
Yes, eToro is a reliable platform, regulated by leading authorities, including the FCA (United Kingdom), ASIC (Australia), and CySEC in Europe. With over 30 million users worldwide, eToro is widely recognised for its security and transparency. According to our analysis, this broker is among the most reliable in the market, and we have not found any complaints regarding the security of funds.
Why choose eToro?
With eToro, you don't need to be an expert to get started. Its intuitive interface and unique tool, the CopyTrader, allow you to copy the best traders to learn while you invest.
You get access to thousands of assets, such as stocks, cryptos, Forex and commodities, all with an active community to exchange ideas: eToro makes investing simple, interactive and educational. It's like the Spotify of investing.
What are the fees at eToro?
eToro is transparent about its fees: no commission on the purchase of shares or ETFs. Spreads vary depending on the asset, but remain very affordable.
Deposit is free, and withdrawal is set at $5. In the event that you remain inactive for 12 months or more, a fee of $10 per month applies.
Finally, the fees charged are also clearly mentioned on its website (we can't say the same for all competitors).
Who is eToro for?
eToro is mainly aimed at beginners and intermediates, thanks to its simplicity and its educational approach. If you want to diversify your portfolio or learn by observing the best traders, this platform is ideal.
Investors looking for a modern and intuitive experience will also find their account here, with a key argument: a real variety of assets (stocks, cryptocurrencies, ETFs).
Is it easy to withdraw your money from eToro?
Yes, withdrawing your winnings from eToro is as easy as investing. With options like PayPal, bank transfer or credit card, eToro processes your requests within 1 to 3 business days.
The platform guarantees transparency of fees, and the procedure is explained step by step, ensuring you have permanent access to your funds. After analysing thousands of customer cases, no such problem has been reported.
Is eToro reliable?
Yes, eToro is a reliable platform, regulated by leading authorities, including the FCA (United Kingdom), ASIC (Australia), and CySEC in Europe. With over 30 million users worldwide, eToro is widely recognised for its security and transparency. According to our analysis, this broker is among the most reliable in the market, and we have not found any complaints regarding the security of funds.
Why choose eToro?
With eToro, you don't need to be an expert to get started. Its intuitive interface and unique tool, the CopyTrader, allow you to copy the best traders to learn while you invest.
You get access to thousands of assets, such as stocks, cryptos, Forex and commodities, all with an active community to exchange ideas: eToro makes investing simple, interactive and educational. It's like the Spotify of investing.
What are the fees at eToro?
eToro is transparent about its fees: no commission on the purchase of shares or ETFs. Spreads vary depending on the asset, but remain very affordable.
Deposit is free, and withdrawal is set at $5. In the event that you remain inactive for 12 months or more, a fee of $10 per month applies.
Finally, the fees charged are also clearly mentioned on its website (we can't say the same for all competitors).
Who is eToro for?
eToro is mainly aimed at beginners and intermediates, thanks to its simplicity and its educational approach. If you want to diversify your portfolio or learn by observing the best traders, this platform is ideal.
Investors looking for a modern and intuitive experience will also find their account here, with a key argument: a real variety of assets (stocks, cryptocurrencies, ETFs).
Is it easy to withdraw your money from eToro?
Yes, withdrawing your winnings from eToro is as easy as investing. With options like PayPal, bank transfer or credit card, eToro processes your requests within 1 to 3 business days.
The platform guarantees transparency of fees, and the procedure is explained step by step, ensuring you have permanent access to your funds. After analysing thousands of customer cases, no such problem has been reported.
Is AvaTrade reliable?
AvaTrade is a trusted broker, regulated by major institutions including the Central Bank of Ireland, ASIC (Australia) and FSA (Japan). Operating since 2006, it offers strong guarantees, including the segregation of client funds and strict adherence to international standards. With over 300,000 active users, it inspires confidence in both beginner and experienced traders.
Why choose AvaTrade?
AvaTrade combines simplicity and expertise. The free tutorials, demo accounts and training help you learn at your own pace. Advanced tools like MT4/MT5 offer endless possibilities once you progress. You don’t need to be an expert: AvaTrade adapts to you.
What are the fees at AvaTrade?
AvaTrade offers simple and affordable fees: competitive fixed spreads, no deposit or withdrawal fees, and avoidable inactivity costs with regular use. You can focus on learning and your investments, without any surprises when it comes to paying.
Who is AvaTrade for?
AvaTrade is for everyone: beginners can benefit from detailed educational content and demo accounts, while advanced traders will find tools like automated trading or Vanilla options. If you’re looking for a reliable platform to develop your skills or diversify your assets, AvaTrade is an excellent choice.
Is it easy to withdraw money from AvaTrade?
Yes, AvaTrade offers a fast and secure withdrawal process. Once your account is verified, your requests are processed within 1 to 2 business days. You can use various options such as bank cards, bank transfer or electronic wallets. Everything is designed to give you quick, clear and secure access.
Is AvaTrade reliable?
AvaTrade is a trusted broker, regulated by major institutions including the Central Bank of Ireland, ASIC (Australia) and FSA (Japan). Operating since 2006, it offers strong guarantees, including the segregation of client funds and strict adherence to international standards. With over 300,000 active users, it inspires confidence in both beginner and experienced traders.
Why choose AvaTrade?
AvaTrade combines simplicity and expertise. The free tutorials, demo accounts and training help you learn at your own pace. Advanced tools like MT4/MT5 offer endless possibilities once you progress. You don’t need to be an expert: AvaTrade adapts to you.
What are the fees at AvaTrade?
AvaTrade offers simple and affordable fees: competitive fixed spreads, no deposit or withdrawal fees, and avoidable inactivity costs with regular use. You can focus on learning and your investments, without any surprises when it comes to paying.
Who is AvaTrade for?
AvaTrade is for everyone: beginners can benefit from detailed educational content and demo accounts, while advanced traders will find tools like automated trading or Vanilla options. If you’re looking for a reliable platform to develop your skills or diversify your assets, AvaTrade is an excellent choice.
Is it easy to withdraw money from AvaTrade?
Yes, AvaTrade offers a fast and secure withdrawal process. Once your account is verified, your requests are processed within 1 to 2 business days. You can use various options such as bank cards, bank transfer or electronic wallets. Everything is designed to give you quick, clear and secure access.
Our 7 tips for buying Vodafone stock
| 📊 Step | 📝 Specific tip for Vodafone |
|---|---|
| Analyse the market | Evaluate the UK and international telecom sectors, noting Vodafone’s stable position, upcoming merger with Three UK, and ongoing transformation for future growth. |
| Choose the right trading platform | Pick a trusted UK broker with direct access to the London Stock Exchange and competitive fees, so you can efficiently buy and manage your Vodafone shares. |
| Define your investment budget | Decide how much to invest based on your financial goals and risk appetite; Vodafone’s stable dividend makes it appealing for both modest and larger allocations. |
| Choose a strategy (short or long term) | Consider a long-term approach to benefit from Vodafone’s transformation, dividend yield, and exposure to growth areas like IoT and African digital services. |
| Monitor news and financial results | Stay updated with Vodafone’s quarterly results, especially the May and July 2025 announcements, and track progress on mergers and key market exits. |
| Use risk management tools | Utilise stop-loss orders to protect your capital and review your position regularly, as execution risks and market sentiment can affect telecom stocks. |
| Sell at the right time | Plan to take profits around technical resistance levels or after key announcements, such as completion of strategic deals or major results releases. |
The latest news about Vodafone
Vodafone's merger with Three UK is on track for completion in early 2025, signaling market consolidation and future growth potential. This merger, currently under scrutiny by the UK Competition and Markets Authority (CMA), represents one of the most significant telecom deals in recent UK history. If approved, it will combine two major mobile networks, potentially creating the UK’s largest operator, boosting economies of scale, and accelerating 5G rollout nationwide. The UK government’s focus on connectivity and digital infrastructure aligns with this initiative, and Vodafone has emphasized commitments to investing in network coverage and capacity. Both companies have reassured regulators about protecting consumer interests, with Vodafone highlighting the combined entity's ability to deliver better rural and urban service, which could resonate positively with local investors and analysts.
Vodafone announced on May 2, 2025, that service revenue in the UK grew modestly, reflecting stabilized competitive dynamics and early benefits from digital transformation efforts. The trading update showed a steady performance in the UK, driven by improved customer retention and ongoing investments in network reliability. This stability contrasts recent volatility in European peers and bodes well for the UK segment’s contribution to the group’s consolidated results. Vodafone also reported progress in operational simplification and positive outcomes from AI-powered customer service enhancements, reinforcing confidence in its transformational roadmap. These factors support a constructive outlook on the company’s ability to defend market share and generate predictable cash flows in its home market.
Technical indicators turned slightly bullish for Vodafone stock in the last week, increasing investor confidence ahead of major strategic milestones. With most moving averages (20-day, 50-day, 100-day, 200-day) positioned below the current price and a Relative Strength Index (RSI) near but not in overbought territory, technical sentiment leans optimistic. Fifteen bullish indicators outweigh five bearish ones, according to European equity research. This is particularly notable as the stock remains above key support levels while approaching resistance, setting the stage for potential further upside if positive catalysts materialize, such as the successful UK merger or strong financial results. The relatively low beta also underscores Vodafone’s defensive appeal within UK equities.
Vodafone’s substantial 7.5% dividend yield and relatively low P/E ratio remain attractive features for income-oriented UK investors. These financial metrics were reaffirmed in recent analyst commentary and industry reports, positioning Vodafone as a compelling choice for portfolios seeking stable returns in a low-interest-rate environment. The sustained dividend is supported by resilient cash flow generation, even as the company executes considerable transformation initiatives. The ongoing simplification, cost discipline, and portfolio reshaping, including major UK and Italian transactions, strengthen Vodafone’s ability to maintain attractive shareholder distributions.
Positive momentum in Vodafone’s enterprise and B2B services continues, with UK partnerships and new digital offerings contributing to growth. Recent updates underscore the contribution of Vodafone Business, which has expanded organic service revenue through strategic collaborations with technology leaders such as Microsoft and Google. Growth in digital and cloud-based solutions, as well as Internet of Things (IoT) deployments tailored to UK enterprises, have provided a buffer against consumer-market pressures. This diversification enhances Vodafone’s long-term prospects in the UK, as domestic businesses increasingly adopt digital transformation strategies, enabling further cross-selling opportunities and recurring revenue streams.
FAQ
What is the latest dividend for Vodafone stock?
Vodafone currently pays a dividend, offering a strong yield of 7.50%, which is notably high among FTSE 100 stocks. The most recent interim dividend was paid in February 2025, with the next annual payment expected following the May 2025 results. Historically, Vodafone has maintained a consistent dividend policy, making the stock attractive for income-oriented investors, though future distributions always depend on company performance.
What is the forecast for Vodafone stock in 2025, 2026, and 2027?
Based on the current share price of 72.96 GBX, the projected values are: end of 2025 at 94.85 GBX, end of 2026 at 109.44 GBX, and end of 2027 at 145.92 GBX. These forecasts are grounded in Vodafone’s ongoing transformation strategy, which includes cost reductions, strategic partnerships, and expansion in digital services—factors that could support continued momentum and investor confidence as the company executes its transformation.
Should I sell my Vodafone shares?
Holding onto Vodafone shares may be appropriate for investors seeking stable income and exposure to a global telecom brand in transition. The current valuation, relatively low P/E ratio, and resilient dividend policy suggest the potential for mid- to long-term value creation. The company’s proactive transformation strategy and focus on growth areas like digital services and African markets reinforce long-term prospects, making it sensible to consider holding through this period of change. As always, investment decisions should be aligned with your financial goals and risk tolerance.
Are Vodafone shares eligible for ISA accounts and how are dividends taxed in the UK?
Vodafone shares are eligible to be held within a UK Stocks and Shares ISA, allowing investors to benefit from tax-free capital gains and dividend income. When held outside an ISA, dividends from Vodafone are subject to UK dividend tax above the annual allowance; however, there is no withholding tax on UK dividends for resident individuals. Keeping Vodafone in an ISA is often advantageous for managing overall tax liability and maximising returns.
What is the latest dividend for Vodafone stock?
Vodafone currently pays a dividend, offering a strong yield of 7.50%, which is notably high among FTSE 100 stocks. The most recent interim dividend was paid in February 2025, with the next annual payment expected following the May 2025 results. Historically, Vodafone has maintained a consistent dividend policy, making the stock attractive for income-oriented investors, though future distributions always depend on company performance.
What is the forecast for Vodafone stock in 2025, 2026, and 2027?
Based on the current share price of 72.96 GBX, the projected values are: end of 2025 at 94.85 GBX, end of 2026 at 109.44 GBX, and end of 2027 at 145.92 GBX. These forecasts are grounded in Vodafone’s ongoing transformation strategy, which includes cost reductions, strategic partnerships, and expansion in digital services—factors that could support continued momentum and investor confidence as the company executes its transformation.
Should I sell my Vodafone shares?
Holding onto Vodafone shares may be appropriate for investors seeking stable income and exposure to a global telecom brand in transition. The current valuation, relatively low P/E ratio, and resilient dividend policy suggest the potential for mid- to long-term value creation. The company’s proactive transformation strategy and focus on growth areas like digital services and African markets reinforce long-term prospects, making it sensible to consider holding through this period of change. As always, investment decisions should be aligned with your financial goals and risk tolerance.
Are Vodafone shares eligible for ISA accounts and how are dividends taxed in the UK?
Vodafone shares are eligible to be held within a UK Stocks and Shares ISA, allowing investors to benefit from tax-free capital gains and dividend income. When held outside an ISA, dividends from Vodafone are subject to UK dividend tax above the annual allowance; however, there is no withholding tax on UK dividends for resident individuals. Keeping Vodafone in an ISA is often advantageous for managing overall tax liability and maximising returns.
