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Verizon Wireless is making a fresh $7B cash distribution to owners Verizon (VZ) and Vodafone...

Verizon Wireless is making a fresh $7B cash distribution to owners Verizon (VZ) and Vodafone (VOD) - Verizon will get $3.85B, and Vodafone $3.15B. A $10B distribution was made in 2011, and an $8.5B distribution last November. CEO Lowell McAdam appeared to be hinting earlier this month Vodafone might not get a distribution this year, as Verizon Wireless focuses on paying down debt. VOD +0.5% AH. VZ +0.3%.
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Comments (5)
  • Esekla
    , contributor
    Comments (4315) | Send Message
    The suggestion that VZW would not make a payout, as if there was some way they could have avoided it, was about as credible as the "leaks" from "knowledgeable sources" that a buyout is actually going to happen. Perhaps they'll finally give that agenda a break for a while too:
    13 May 2013, 05:06 PM Reply Like
  • bjamesh
    , contributor
    Comments (206) | Send Message
    Not exactly sure if Vodafone plans to buy back more of its shares with this like they did last time or distribute it to VOD shareholders. If it becomes a dividend then that should work out to about $0.62/ADR.
    13 May 2013, 06:10 PM Reply Like
  • rw1270
    , contributor
    Comments (422) | Send Message
    I think Vodafone will keep the money to plug any losses from cashflows in their Euro business. No special dividend, perhaps a little more buyback, mostly cash to make regular dividend without a hitch. I'd say 7% increases in regular divvy are safe for another year, even if Euro business is in the toilet.
    13 May 2013, 06:59 PM Reply Like
  • Esekla
    , contributor
    Comments (4315) | Send Message
    I agree that a dividend is not very likely. The problem is not just Europe, it's also India, where they've invested a lot of money and may have write downs in store.
    13 May 2013, 09:02 PM Reply Like
  • jumpnjoey77
    , contributor
    Comments (1023) | Send Message
    Sounds kind of like extortion/black mail type of deal?
    17 May 2013, 09:06 AM Reply Like
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