Vodafone raises dividend for first time in eight years after German growth revival

Vodafone Group said it will raise its dividend for the first time in eight years, buoyed by a return to revenue growth in Germany and stronger performance across key markets that prompted the telecoms giant to upgrade its earnings outlook.

Shares in the British mobile and broadband operator jumped 5% to 94 pence — their highest level in two and a half years — after Vodafone reported a 5.9% rise in first-half adjusted earnings to €5.73 billion ($6.68 billion). The company said it now expects full-year earnings to come in at the upper end of its €11.3–€11.6 billion forecast range, with free cash flow between €2.4 billion and €2.6 billion.

Chief Executive Margherita Della Valle said Vodafone will adopt a new progressive dividend policy, targeting a 2.5% increase for the fiscal year ending March 2026. “It’s been a long time since this happened in Vodafone, and we are pleased to share this with our investors,” she told reporters.

Vodafone, which cut its dividend by 40% in 2019 amid heavy spending on 5G spectrum, has undergone major restructuring under Della Valle. The company has merged with Three in Britain to become the market leader and exited challenging markets in Spain and Italy. Growth returned in Germany in the second quarter as the drag from 2024 TV subscription rule changes faded, while strong results in the UK, Turkey, and Africa also supported performance.