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Vodafone's 45% stake in Verizon is paying off, $4.3 billion payout is theirs shortly

Vodafone has a 45% stake in Verizon Wireless, stands in like for a $4.3 billion payday

| Business, Financial & Legal News | Posted: Jul 9, 2012 2:32 am

U.K.-based Vodafone owns a very tidy 45-percent stake in U.S.-based Verizon Wireless, America's largest mobile phone network. After a long hiatus, the company begin sharing profits with their first payment to Vodafone being $10 billion, shared with Verizon's majority owner, Verizon Communications.

 

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The results of this were $4.3 billion total, with $3.09 billion distributed to its shareholders through a 4-percent dividend in February. This number could rise from $4.3 billion to $4.6 billion this financial year, and balloon out to $6.1 billion by 2016, according to broker Liberum Capital. Liberum analyst Lawrence Sugarman says:

 

We expect news shortly that the payment will be repeated at a higher level. Verizon has material scope to increase its dividend going forward, and crucially, because of the need to fund the Verizon group dividend, has a significant incentive to pay one.

 

It should be noted that Verizon Wireless generates $1 billion in cash each month, with revenues continuing to rise.

NEWS SOURCE
Guardian.co.uk

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