Verizon Stiffs Vodafone
August 22, 2007 by Douglas A. McIntyreVodafone (VOD) had some shareholders who wanted the company to sell part of its stake in Verizon Wireless back to majority owner Verizon (VZ). VOD management made the argument that the wireless operation was too valuable to sell now. And, there was the chance of a fat dividend in 2009. A nice little benefit for VOD’s balance sheet.
Well, according to the FT, that won’t happen. It now looks like the first payment will be 2010. As the paper writes "The likely slippage to 2010 or later could fuel tension". VZ would rather use cash to pay down the wireless JV’s debt. But, VOD said “We remain of the view that dividend payments will resume in calendar year 2009."
It looks like Vodafone will have a couple of unhappy years.
Douglas A. McIntyre
Essential Tips for Investing: Sponsored
A financial advisor can help you understand the advantages and disadvantages of investment properties. Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
Investing in real estate can diversify your portfolio. But expanding your horizons may add additional costs. If you’re an investor looking to minimize expenses, consider checking out online brokerages. They often offer low investment fees, helping you maximize your profit.