, Columnist
Vodafone Finally Catches Up with 5G Reality
Despite the protestations, Nick Read had little choice but to cut the dividend. Investments in 5G and networks should take priority now.
Vodafone and its peers have paid oversized dividends for too long. Far better to invest in the company’s future.
Photographer: Angel Garcia/BloombergThis article is for subscribers only.
It’s counterintuitive: You cut the dividend, yet the shares rise.
That’s exactly what happened to Vodafone Group Plc on Tuesday morning; maybe it was short-term relief that an industry known for its generous payouts was finally getting a sense of reality. Telecoms operators’ historic tendency toward outsized dividends has tied up capital that might have been better spent on new technologies.