Verizon paves the way for dividends payout

Reports have emerged today that the US’s largest mobile operator Verizon Wireless could begin paying a dividend to Vodafone as of 2012.
Verizon Communications holds the controlling stake in Verizon Wireless and it now seems that dividends are set to make…

Reports have emerged today that the US’s largest mobile operator Verizon Wireless could begin paying a dividend to Vodafone as of 2012.

Verizon Communications holds the controlling stake in Verizon Wireless and it now seems that dividends are set to make a come back, after Vodafone stopped receiving dividends from Verizon Wireless in 2005. Vodafone holds the remaining 45% stake in Verizon Wireless.

Verizon Communications has until now shunned dividends to instead focus on paying down its debt, but the company CFO John Killian was quoted as telling Bloomberg that it may bring back dividends which would then be paid out to both parent groups, as of 2012, as it is expected that debt will be paid down next year.