Is Vodafone Group Plc (ADR) (VOD) an Exciting Emerging-Market Play?

So is Vodafone a buy?
City analysts expect earnings per share to have increased 2% in the year ending March 2013, to 15 pence, results for which are due on Tuesday, May 21. Earnings are expected to rise 8% and 6% in 2013 and 2014 respectively, to 16 pence and 18 pence.

Vodafone Group Plc (ADR) (NASDAQ:VOD) has a solid, multi-year track record of building dividends, and this is expected to keep on rolling. Last year’s payout around 9.5 pence per share — excluding a special 4 pence dividend from Verizon Wireless — is anticipated to rise to 10.4 pence per share for March 2013, before increasing to 10.8 pence per share in 2014 and 11.1 pence per share in 2015.

And dividend yields for the current year and next come in at 5.5% and 5.6% respectively, comfortably clear of an average prospective yield of 4.5% for the mobile telecommunications sector, and 3.2% average for the FTSE 100 (INDEXFTSE:UKX).

Vodafone Group Plc (ADR) (NASDAQ:VOD) currently deals on a P/E rating of 11.9 and 11.2 for 2014 and 2015 correspondingly, comparing favorably with a forward earnings multiple of 13.2 for the entire mobile telecommunications sector. In my opinion the mobile giant’s galloping pan-global presence bodes well for future earnings growth, while increasingly juicy dividend prospects make it a standout pick for income investors.

The article Is Vodafone Group (LSE:VOD) (NASDAQ:VOD) an Exciting Emerging-Market Play? originally appeared on Fool.com is written by Royston Wild.

Fool contributor Royston Wild has no position in any stocks mentioned. The Motley Fool recommends Vodafone. The Motley Fool owns shares of China Mobile.

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