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How to buy Vodafone shares (VOD)
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Compare the best Vodafone trading platformsCopy link to section
The links below will take you to the best places to buy Vodafone stock online. These brokers are the best in the business and allow you to buy stocks and shares in a large number of companies, often with no fees.
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How to buy Vodafone stock, a step-by-step guideCopy link to section
Buying shares in Vodafone is a simple process, even for the most inexperienced investor. The following list explains the steps you need to take to complete your investment.
- Choose a broker. In order to invest, you need to use an online brokerage platform. There are many different options to choose from, each with their own unique benefits and drawbacks. The comparison table above can help you select the right broker for you, and you can head to our comprehensive broker reviews if you’re still unsure.
- Create an account. Once you’ve selected your broker, simply go to their website and create an account. The steps required for this will vary from platform to platform, but generally, you can expect to have to provide your name, email address, phone number, and some form of photo identification.
- Deposit funds. Log into your broker account and select the option to deposit funds. Depending on your broker you’ll have a variety of payment options available; most brokers accept bank transfers and debit card payments, but not all accept e-wallets such as PayPal. Select your preferred payment method and deposit the amount of money you wish to invest in Vodafone shares.
- Place an order for VOD stock. Now navigate to the shares section on your brokerage platform of choice. Here you can search for Vodafone’s ticker symbol (VOD) and see the current price at which the stock is trading. If you’re happy with the price, enter the amount of shares you wish to buy and place your order.
- Execute your order. Once you have placed your order, your broker will automatically execute it for you and your Vodafone shares will be listed in your account. Congratulations, you’ve just bought shares in Vodafone!
What is Vodafone? And should I invest?Copy link to section
Vodafone (LON: VOD) is a British telecommunications company. It is Europe’s major broadband and mobile player and has a presence across the world. Vodafone developed out of military radio technology into a company called Racal Electronics. In 1988 Racal Telecom went public and in 1991 demerged as Vodafone Group.
Vodafone has long been a reliable stock for dividend investors. It kept its dividend payout stable in 2020 despite difficult market conditions and offers an attractive yield. Its prospects for long term growth are more challenging in a highly competitive field, even more so as two of its biggest rivals, O2 and Virgin Media, are exploring a merger.
To raise funds and continue to compete, Vodafone has consolidated its mast infrastructure into its own entity, Vantage Towers. It’s expected to float that entity and use the proceeds to pay down debt in 2021.
How has the company performed in recent years?Copy link to section
Vodafone had been in the midst of a value slide since the mid-2010s, long before the global market skid prompted by the coronavirus pandemic. With capital outlay producing less and less return in the entire mobile technology industry, it turned to selling off non-core businesses and some of its physical infrastructure to try to prompt a turnaround.
Over recent years Vodafone has made an effort to narrow its focus down to its core European markets. It sold off assets in New Zealand and Egypt and finally came to a deal with the Indian government to prevent its business there from going into liquidation. It also acquired Liberty Global’s European assets in 2019, made up of German and eastern European cable networks, giving it the opportunity to strengthen its position in Europe.
Despite those deals, its value dropped precipitously from highs of almost 300p in 2014 down to 130p in 2020. It accrued more debt in acquiring Liberty’s assets and was forced to cut its dividend in 2019.
Is it a good time to buy Vodafone shares now?Copy link to section
Vodafone has usually been a good investment in terms of dividend yield. Despite cutting it in 2019, investor fears over further cuts in the midst of the pandemic proved unfounded and it is one of the best dividend stocks around. Whether now is a good time to invest thus depends on your goals, for long term growth the picture is more complicated.
A lot depends on 5G technology. The demand for mobile technology as a whole is likely to expand with the growth of 5G. If Vodafone is able to develop its 5G network and infrastructure it could be well-positioned to offer longer term shareholder growth. A lot depends on whether it is able to reduce its significant debt burden, which would allow it to compete with the extremely high capital costs associated with keeping up in mobile technology.
Along with 5G, potential buyers should look out for Vodafone offering something different to its competitors. It may be able to benefit from cutting costs and cross-selling through its Liberty Global Assets acquisition but that is something to track moving forward. You can stay up to date on all the latest news from Vodafone, as well as our most recent bits of market analysis, below.
Buying, selling and trading shares for beginnersCopy link to section
What to do before buying sharesCopy link to section
You should always take the time to research a stock fully before investing your money, especially if you haven’t bought shares before. The more knowledge you have, the better your chances of making a wise investment.
With that in mind, here’s a checklist to run through before investing in Vodafone shares.
- Research the company. You should always examine the fundamentals of a company before investing. What is Vodafone? How did the company get its start? How did it grow? Is Vodafone’s revenue and profit growth picking up? Is the company innovating? The more you know about Vodafone, the better positioned you’ll be to make smart investment decisions.
- Make sure you understand the basics of stock investing. Before getting involved in the stock market, make sure you have an understanding of how it works. This will ensure that you have more clearly defined goals and have thought through how you will achieve them.
- Decide between share dealing and CFD trading. Choose the type of investment strategy you want to pursue, and make sure you have carried out the necessary fundamental or technical analysis for share dealing and CFD trading respectively.
- Set the size of your budget. The golden rule of investing is never to risk more than you can afford to lose. Not every investment you make will result in a profit, so it is important to set a budget that not only allows good potential for capital growth, but also protects against overly damaging losses.
- Find the right broker. Individual brokers each have their own pros and cons. Some will have low fees but have a user interface you struggle to understand, whereas others may be a bit more expensive but come with a range of features that you want to take advantage of. Our extensive broker reviews can help you find the right platform for you.
- Examine broader market conditions. No stock exists in a vacuum, and it’s always important to analyse the general trends of the stock market as a whole before investing. If a bear market is setting in and stock prices are falling, it’s best to wait it out and invest your money later when the stock is cheaper. If, however, the market is looking bearish, you’ll want to make your investment quickly to get the maximum benefit from rising stock prices. Our news segment can help you keep on top of movements in the financial markets.
What is the difference between buying, selling, and trading shares?Copy link to section
If you’re new to stock investing, then it’s important to understand the basics of investing in Vodafone shares. Here’s a quick run-through of what’s involved in each method.
This process involves finding a broker and placing an order, as outlined in the steps further up this page. Ideally you want to time your investment when the stock’s price is low so that you can profit by selling the shares after they increase in value.
When you sell any Vodafone shares you have bought, you’ll want to do so at a higher price than the one at which you bought to earn a profit.
When you sell is up to you. You might decide to hold for an extended period of time, hoping to benefit from the company growing steadily throughout. Or, if you see that Vodafone’s stock is already up a lot compared to the price you bought it and you’ve noticed that the stock market is starting to fall, it might make sense to sell and take your profits to invest elsewhere. Equally, if the stock has fallen since you bought it and looks set to fall further, it might be a good idea to cut your losses by selling your shares.
Trading is the same process as buying and selling shares, it’s just done over shorter periods of time with the aim to make small profits on a regular basis. This means that you can make money faster and spend your profits in your day-to-day life – however, on the other side it means you can lose money faster as well. For inexperienced investors, we generally recommend making investments for at least 6 months to a year instead of making trades in quick succession.
You can trade Vodafone shares outright, or use CFDs. These allow investors to speculate on stock prices and trade with leverage in pursuit of bigger gains. CFDs trading is explained further in the next section, but it is worth noting that beginners should avoid trading with leverage. It comes with large risks and is best left to experienced investors.
Share dealing vs CFD tradingCopy link to section
When it comes to investing in any stock, the two options you have are share dealing and trading. Which one of these methods to opt for largely depends on your investment timeline, with investors thinking long term tending to go for share dealing, and those looking for short term gains pursuing a more aggressive trading strategy.
Here’s a quick summary of the two approaches, and the pros and cons of each.
Share dealingCopy link to section
Share dealing refers to the practice of buying and holding shares in a particular company over the long term. When investing like this, you’re seeking to profit either from dividend payments or an increase in the stock’s price over time.
When investing your money this way, it is important to do a thorough fundamental analysis of the company in which you are investing. You want to put your money in a stock you believe will trend upwards over time, even if there is some market volatility along the way, rather than get distracted by shorter-term peaks and troughs.
- Can build wealth over time to achieve financial goals
- Don’t need to be very reactive to short-term market movements
- Some stocks will give you an income through regular dividend payments
- Takes a long time to realise any profits
- Your capital is tied up in stocks and cannot be used for other investments
CFD TradingCopy link to section
If your aim is to generate profits in the short term, then you might be better off trading shares than holding them in your portfolio. Stock trades like this are executed using CFDs (contracts for difference), which allow investors to trade against the value of a stock without having to take ownership of it. When CFD trading, investors are looking to buy and sell stocks fast to profit from short-term fluctuations in value.
One aspect of CFD trading that many investors find attractive is that they allow you to trade with leverage. This means you can place large trades while only putting up a fraction of the value yourself – for instance, if a platform offered leverage of 1:10, you could put £10 into VOD shares and be able to trade £100 worth. This can maximise profits if the market moves in your favour, but be careful as it can also lead to heavy losses.
When trading using CFDs, it is key to be skilled at technical analysis and reading stock price charts. As you’re trading stocks quickly and frequently, the fundamental strength of the company in which you’re investing isn’t as important as being able to predict how its stock price will rise and fall minute-by-minute.
- Can generate fast profits if you read the market right
- Some platforms allow you to trade with leverage
- Prevents your capital being tied up so you can take advantage of investment opportunities
- Trading with leverage is risky and can lead to big losses
- Doesn’t necessarily generate growth over the long term
Consider which approach suits you best and craft an investment strategy that works for you.
If neither of these options appeal to you, then you can find a variety of other ways to invest in VOD stock on this page. If, however, you’re ready to buy Vodafone shares now, simply select one of the brokers in the table above and get started.
How to choose a brokerCopy link to section
With the wide variety of online brokers available these days, it can be hard to figure out which is the best service to go with. Our comparison table and in-depth reviews can help you cut through the noise, but by and large these are the aspects you should be considering when selecting a broker:
- Range of stocks available. The most important thing is that you can actually use the broker to buy the shares you’re looking for. Some brokers offer more stocks than others, and many will allow you to trade other assets, such as forex and even commodities.
- Fees and commissions. You want to keep as large a chunk of your profits as you can, so it’s important to make sure your broker doesn’t charge high fees that can eat into your profits.
- Regulation. You should only use regulated brokers to place trades. Unregulated brokers can be risky and offer little to no protection if the business were to fail while you had funds in your account.
- Payment methods available. You might want to use a specific payment method, such as PayPal. Not all brokers accept every payment method, but by using our comparisons, you can search only for the brokers that support the option you’re looking for.
- Reputation. One of the strongest indicators of a broker’s reliability is the reputation it has with the customers who have used it. Brokers are online businesses, and as such many user experiences can be found online. You can check these out in addition to our reviews to make sure you choose the right platform.
- Customer service. As you’re going to be investing your money using the platform, you want to check that the broker offers good customer service in case you have a query or something goes wrong.
Latest Vodafone newsCopy link to section
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Invezz is a place where people can find reliable, unbiased information about finance, trading, and investing – but we do not offer financial advice and users should always carry out their own research. The assets covered on this website, including stocks, cryptocurrencies, and commodities can be highly volatile and new investors often lose money. Success in the financial markets is not guaranteed, and users should never invest more than they can afford to lose. You should consider your own personal circumstances and take the time to explore all your options before making any investment. Read our risk disclaimer >