Vodafone may get US divi in 2012

18th Jun 2010 11:48

Vodafone could start receive dividends again from its US mobile venture Verizon Wireless in 2012 after executives at its partner said they are looking at what to do with its growing cashflow.Vodafone owns 45% of Verizon Wireless. US company Verizon owns the remainder and stopped dividend payments in 2005 insisting Verizon Wireless should use its cashflow to pay down its debts.According to John Killian, Verizon Communications' finance director, in an interview yeesterday, Verizon Wireless may be allowed to resume dividend payments again from 2012 as debts will have been all but eliminated by then.Vodafone has estimated that the wireless group is generating about $1.5bn of cash each month.Currently it consolidates the earnings from its joint venture but gets no cash. A sale of its stake has been mooted in the past, but analysts suggest that would give rise to a major tax bill. The UK company has described what to do with its stake in Verizon Wireless as one of its most pressing issues. Receiving a dividend would give it a major boost said analysts.