Share

$8.5bn bonus for Vodafone, Verizon Comms

New York - Verizon Wireless said on Monday that its board agreed to pay a dividend of $8.5bn to its parents Verizon Communications and Vodafone Group.

The announcement follows months of investor speculation as to whether Verizon Wireless, which is controlled by Verizon Communications would choose to pay a dividend this year.

In the past the dividend has been a bone of contention for Vodafone shareholders, anxious to get a return on their ownership in the top US wireless service.    

Verizon Wireless, which is 55% owned by Verizon and 45% owned by Vodafone, said the distributions would be paid in one or more tranches, with each tranche paid in proportion to the owners' partnership interests.

The pay-out compared with a $10bn dividend announced by the company in July 2011. The dividends are due to be paid on or before December 31, Verizon Wireless said.

Verizon had suspended the dividend from 2005 until 2011 while it focused on paying down debt at Verizon Wireless.

Vodafone's US shares edged higher in late trade after closing at $26.39 on Nasdaq. Verizon shares rose to $42.62 after closing at $42.56 on the New York Stock Exchange. 
We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Rand - Dollar
18.94
-0.2%
Rand - Pound
23.91
-0.1%
Rand - Euro
20.43
+0.2%
Rand - Aus dollar
12.34
+0.1%
Rand - Yen
0.13
-0.2%
Platinum
910.50
+1.5%
Palladium
1,011.50
+1.0%
Gold
2,221.35
+1.2%
Silver
24.87
+0.9%
Brent Crude
86.09
-0.2%
Top 40
68,346
+1.0%
All Share
74,536
+0.8%
Resource 10
57,251
+2.8%
Industrial 25
103,936
+0.6%
Financial 15
16,502
-0.1%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders