Thesis
Vodafone (VOD) is in a great position to increase its growth due to its plan to create a separate company with its Tower communications assets.
With the revenues from this operation, Vodafone can strengthen its financial position and profitability. Therefore, we think Vodafone should slash its dividend completely in the short term and focus solely on the company. At a current price of $22, we could see Vodafone appreciate by 30-50% in the short/medium term.
We think Vodafone offers a good investment opportunity, not for the dividend, but the potential capital appreciation.