Vodafone Group may raise dividend by 20%

VODAFONE Group, in which many former eircom investors hold shares, may raise its dividend by 20%, easing investor concern that chief executive Arun Sarin’s expansion strategy may hurt shareholder returns.

Almost a year in the job, Mr Sarin should generate cash from Vodafone’s 130 million mobile-phone users in 26 countries, return more of it to shareholders and keep a lid on takeovers, said investors such as Peter Braendle at Swissca Portfolio Management in Zurich.

Many shareholders opposed the bid for AT&T Wireless, saying it would erode earnings. Mr Sarin, 49, has said he wants to buy Vivendi Universal SA’s stake in French unit SFR.