Vodafone dividend
Vodafone pays 4.5 cents per share in FY25, down from 9 euro cents in FY24. Its FY26 free cash flow of €1,174 million was below €3,134 million of dividends and buybacks, so the cash did not cover those distributions.
How much does Vodafone pay per share over time?
Income tells a separate story. The annual dividend fell from 9 euro cents in FY24 to 4.5 cents in FY25. A rising share price can signal recovery without restoring past earning power or dividend income. The historical table shows why Vodafone’s valuation must be judged against its changing assets and business mix.
| Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | |
|---|---|---|---|---|---|
| Revenue | 40,461 | 37,448 | 36,717 | ||
| EPS, diluted | -1.20 | -15.86 | 4.44 | ||
| Dividend per share | 4.61 | 4.50 | 9.00 | 9.00 | 9.00 |
What this means. The 8.0% sales growth includes sales from Three UK after the acquisition, while the company's underlying sales growth was 3.7%.
Is Vodafone's dividend covered by its cash?
The funding gap was clear in FY26. Free cash flow, the cash left after operating the business and making necessary network investment, was €1,174 million against €3,134 million of dividends and buybacks. Vodafone could cover the difference with cash already held, new borrowing or proceeds from selling assets. That can work temporarily, but an asset sold cannot provide customer receipts again.
| Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | |
|---|---|---|---|---|---|
| Free cash flow | 1,174 | 1,024 | 1,039 | ||
| − Dividends paid | 1,093 | 1,787 | 2,430 | 2,484 | 2,474 |
| − Share buybacks | 2,041 | 1,868 | 0 | 1,867 | 2,087 |
| − Acquisitions | 193 | 9 | 0 | ||
| − Debt repaid | 8,884 | 9,675 | 7,471 | ||
| Paid out, % of free cash flow | 267.0% | 356.9% | 233.9% |
What this means. The company's own net debt is lower because it adjusts debt for collateral, financial contracts, and other items, while our calculation excludes lease debt.
What could change Vodafone's dividend?
The base dividend stays at €0.046125 initially, then grows to €0.04846. The bear case cuts it to €0.0230625 and holds it there, while the bull reaches €0.050853. The restrained base path follows the recent 2.5% increase, but FY26 free cash flow of €1,174m was below €3,134m of dividends and buybacks, making faster growth difficult to justify.
Finally, recurring cash conversion must improve before Vodafone can sustain larger repurchases. Debt reduction ahead of distributions would move the forecast toward the bull path; renewed pressure from capex, interest or integration costs would reinforce the bear path.
| October 2027 | October 2028 | October 2029 | |
|---|---|---|---|
| EBITDA | 13,421 (12,729 / 13,815) | 13,948 (12,581 / 14,792) | 14,508 (12,731 / 15,830) |
| Dividends per share | 0.05 (0.02 / 0.05) | 0.05 (0.02 / 0.05) | 0.05 (0.02 / 0.05) |
| Enterprise value to ebitda | 5.80 (5.00 / 6.40) | 6.00 (4.70 / 6.90) | 6.20 (4.50 / 7.40) |
| Net debt | 32,822 (33,332 / 33,335) | 32,393 (33,469 / 32,598) | 31,480 (33,506 / 30,988) |
What this means. The enterprise value to earnings before interest, taxes, depreciation, and amortization number shows how much investors are paying for each euro of the company's operating earnings.