Vodafone has been facing a lot of headwinds. From a recession across Europe to increased regulation forcing Vodafone to lower MTR and roaming charges. Despite these headwinds Vodafone managed to grow revenue modestly and is projecting modest revenue growth for the coming year. This highlights the resilience of the business.
Assuming that Verizon Wireless continues to pay a dividend Vodafone has a roughly 8% dividend yield and a greater than 10% free cash flow yield. Over time I expect this business to grow nicely as smartphone penetration increases and data usage grows. Vodafone has the stability of a utility with more growth. It trades at roughly half the valuation of US utilities.