Vodafone gets the phonecall it's been waiting for

29th Jul 2011 07:07

Vodafone has picked up the phone to some good news after learning it will receive a dividend worth £2.8bn from US associate company Verizon Wireless . Verizon is paying a total dividend equivalent to £6.1bn and Vodafone, which has a 45% stake in the US mobile phone firm, will receive its payment on 31 January 2012, most of which it will pass on to its own shareholders. Vodafone, one of the world's largest mobile communications companies, intends to pay a special dividend of £2.0 billion, equivalent to 4.0 pence per share, to Vodafone shareholders in February 2012.Details of the dividend timetable will be given in Vodafone's interim results on 8 November 2011. The balance of the proceeds will be retained to reduce net debt.Vittorio Colao, Chief Executive of Vodafone, said:"Our long term partnership in Verizon's strong and successful wireless business has seen the value of our investment increase significantly over recent years. "The dividend from Verizon Wireless allows us not only to reward our own shareholders with an immediate and sizeable cash return, but also to continue to reinvest in our business to improve our customers' experience, further strengthen our competitive position and create additional value for shareholders."Vodafone currently has equity interests in over 29 countries across five continents and more than 40 partner networks worldwide. NR