Vodafone shares yield more than 6% – should you buy, or steer clear?

Vodafone grew revenue by 4% and profit by 11% last year, and offers investors a 6.4% dividend yield. So should you buy Vodafone shares? Rupert Hargreaves looks at the numbers.

Vodafone office
Vodafone has been calling for greater consolidation in the European market.  
(Image credit: © Ralph Orlowski/Getty Images)

A recent post on the FT Alphaville blog describes Vodafone (LSE: VOD) as being one of the UK’s most “persistently irritating” companies. It’s hard to argue with that statement.

The group has flip-flopped from strategy to strategy over the past two decades, and shareholders have been left holding the bag. Over the past 15 years, the Vodafone share price has produced a total return of 94% compared to 114% for the FTSE All-Share Index.

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Rupert Hargreaves
Contributor and former deputy digital editor of MoneyWeek

Rupert is the former deputy digital editor of MoneyWeek. He's an active investor and has always been fascinated by the world of business and investing. His style has been heavily influenced by US investors Warren Buffett and Philip Carret. He is always looking for high-quality growth opportunities trading at a reasonable price, preferring cash generative businesses with strong balance sheets over blue-sky growth stocks.

Rupert has written for many UK and international publications including the Motley Fool, Gurufocus and ValueWalk, aimed at a range of readers; from the first timers to experienced high-net-worth individuals. Rupert has also founded and managed several businesses, including the New York-based hedge fund newsletter, Hidden Value Stocks. He has written over 20 ebooks and appeared as an expert commentator on the BBC World Service.