One Fool outlines why he's not worried about the peaks and troughs of Vodafone Group plc (LON:VOD).
In this Ask A Foolish Question article, I'm going to outline how my first ever shares are doing -- and what I plan to do, having been asked this question numerous times.
For my first foray into the stock market, I bought shares in Vodafone (LSE: VOD) (NASDAQ: VOD.US) in late October 2012 -- only to see the share price fall soon afterwards… and continue to fall, hitting a low of 154p.
The shares then spent the rest of the year wavering between 154p and 163p, but put on a spurt at the beginning of 2013 to regain some value and looked like they were heading back to my buying price and beyond.
However, with tomorrow's trading update approaching, some prominent City analysts downgraded Vodafone from 'buy' to 'neutral' and the shares suffered another dip in the process.
At an average cost per share of 180p per share with trading fees included, my Vodafone holding is currently down 5.5% at the shares' current price of 170p.
I'm standing firm, though. I'm not tempted to cut my losses, or wait until the moment that the shares reach the price at which I bought and then immediately sell them.
The reason for this is that, as a classic defensive share, I hold Vodafone for income. On a prospective yield of 5.8%, it's one of the best yields in the FTSE 100.
In fact, I almost expect a bit of wavering in the share price -- nothing too drastic, mind -- but I'm not worried if it doesn't look like it's on its way to doubling its value any time soon. If I wanted that, I'd look towards a growth share, which Vodafone is certainly not.
When that time comes, I'll be taking a look at the share revealed within our latest free report, "The Motley Fool's Top Growth Share For 2013". Just click here to get your copy delivered to your inbox immediately.
And when I look to increase my income options, I'm going to consider a share that offers a 5.7% income, and might be worth 850p versus around 700p now. Simply click here to download TMF's "Top Income Share For 2013".
> Sam owns shares in Vodafone. The Motley Fool has recommended shares in Vodafone.
