Vodacom Group shares climbed 4.1% in morning trading to 152.18 South African rand after the telecommunications company announced a 21% dividend increase and stronger-than-expected earnings. The South Africa-based firm, majority-owned by Vodafone Group, lifted its final dividend to 4.05 rand per share for fiscal 2026.

Vodacom's full-year dividend reached 7.35 rand per share, surpassing analyst expectations of 7.09 rand. The company reported net profit of 20.65 billion rand ($1.26 billion), up from 16.60 billion rand the prior year. Earnings before interest, taxes, depreciation and amortization increased 13% on a reported basis, driven by international growth.

The telecommunications company also raised its long-term customer targets as part of its expansion strategy. With shares up 7.7% year-to-date, Vodacom's performance reflects investor confidence in its ability to maintain growth momentum in competitive African and European markets under Vodafone's ownership.