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Verizon May Pay Dividend To Vodafone



June 21, 2010 – Comments (1) | RELATED TICKERS: VOD

The press is once again picking up on the event that Vodafone shareholders like myself have been waiting a long time for, the resumption of dividend payments from the company's massive joint venture Verizon Wireless.

Verizon May Pay Dividend To Vodafone

VZ Wireless is using its massive cash flow to pay down its debt month after month after month.  It's only a matter of time before the joint venture between VOD and Verizon wireless will be forced to resume dividend payments to its parent companies.  A recent article in The Financial Times said that the unit may resume dividend payments by the year 2012, which sounds far away but it is rapidly approaching.

I've seen estimates that when dividend payments resume, Vodafone's cash flow will instantly increase by around 30%.  Talk about a huge windfall that will benefit shareholders.

Another potential catalyst that would be a boon for Vodafone is the introduction of the world's best fone, et um phone, Apple's iPhone to the Verizon Wireless network.  Rumors that an iPhone for Verizon Wireless is coming surfaced again this week.  Stories about this are a dime a dozen, but it's going to happen eventually.

Anyone that purchases shares of VOD either today or in CAPS can do so at a price that's around 5% lower than my initial entry price.


1 Comments – Post Your Own

#1) On June 21, 2010 at 7:36 AM, obsoleteaccount (< 20) wrote:

i quickly glanced at the name of this article and thought it said "Verizon May Pay Dividend to Volcanos" which made me give it an insta-rec.

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