Vodafone pays out a semi-annual dividend with the first/interim payout in February and the second/final payout in August. Since they are a foreign company that pays dividends in pounds, the payout that I receive is also dependent on the pound to USD conversion at the time that it's set, typically around 2 weeks prior to the payment. In order to calculate the dividends and YOC I'll be using the last interim and final payment and their USD payouts. These were $0.508033 for the interim and paid in February of this year and $0.990808 paid in August of 2012. Based on a total annual dividend of $1.498841, I can expect to receive $74.94 from these shares. They carry a YOC of 6.08% and increased the YOC for my FI portfolio from 2.93% to 2.99%. I'm just shy of my goal of carrying a 3.00% YOC for my FI portfolio, but I do carry a 3.37% YOC for my portfolio excluding my ESPP shares. I'm also 58.76% of the way towards my goal of $3,500 in forward dividends by the end of the year.
I had debated selling a put on Vodafone but held back since I wanted to own VOD and selling a put does not guarantee that. There were some very compelling combinations of strike and puts and I still might sell a put in the future should the premiums remain high.
Speaking of my ESPP shares, my employer HAL increased their dividend yesterday as well by a whopping 38.89% from $0.09 to $0.125 on a quarterly basis. Halliburton is by no means a consistent dividend grower with the last increase coming over 5 years ago, but this is great for me since I currently own over 560 shares through ESPP purchases. So while I wait to have the shares hit LTCG treatment I can collect a much better dividend in the process. I have 3 open call options out to start trimming some of my position which I need to get in the works with another purchase going through in March of this year. If none of the options are executed then I will receive an extra $79 in annual dividends to be able to put to work in other DG stocks.
My forward 12-month dividends crossed the $2k mark for the first time ever which is a great milestone and now sit at $2,056.52 after the VOD purchase and HAL increase.
For more information about VOD, Dividend Growth Machine recently purchased some himself and has a great write up about the current value prospects of VOD.