Vodafone today announced that the Board of Verizon Wireless has approved the payment of a $10 billion (£6.1 billion) dividend. As a 45% shareholder in Verizon Wireless, Vodafone’s share of the dividend will be $4.5 billion (£2.8 billion). The dividend is due to be paid on 31 January 2012.
The Board of Vodafone therefore intends to pay a special dividend of £2 billion, equivalent to 4.0 pence per share, to Vodafone shareholders in February 2012. Details of the dividend timetable will be communicated with 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, commented: “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.”