Verizon Wireless, the larget US mobile phone network operator, has approved a $10 billion payout to its owners in proportion with their ownership. That means a £2.8 billion payday for Vodafone which in turn will return the bulk of this divident to its shareholders.
This was the first distribution of funds back to its owners in five years for Verizon Wireless, a company that generates $10 billion in cash each year according to Business Week and is owned by Verizon Communications Inc and Vodafone Group Plc.
Vodafone CEO Vittorio Colao said in a statement on the news:
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
Whilst this is great news for Vodafone shareholders, the UK public may feel aggrieved that the company is generating even more value for its shareholders whilst alledgedly failing to pay up to £6 billion in tax to the Exchequer – an issue highlighted by campaign group UK Uncut.