Vodafone gets boost from US stock pickers

Vodafone, one of Britain's biggest companies, has been given a boost today after a positive assessment from the respected US business journal Barron's.

The magazine argues that Vodafone is undervalued despite its sluggish performance in the last 12 months.

The key issue is the firm's 45% stake in Verizon Wireless, the US mobile provider that is beginning to pay serious dividends ($4.5bn expected in 2012).

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Vodafone will be passing its portion of those payouts back to shareholders at a rate of $2 for a total 7.5% yield on its US stock listing. Significantly, the above may become an annual and recurring event, Barron's says, describing the first of those dividends as a potential 'watershed' event.

Added to that is its strategic position in important emerging markets like Turkey and India and the tantalising prospect of a full blown merger with Verizon Communications (which owns 55% of Verizon Wireless). Barron's believes Newbury based Vodafone is a buy.

At 2:59 GMT Vodafone was the fifth biggest riser on the FTSE, up 0.86% at 181.6p.

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