Verizon Wireless, a joint venture of Verizon Communications Inc. and Vodafone Group PLC, will pay out $7 billion to its owners before the end of next month. Verizon, which owns 55% of the partnership, has been publicly pushing Vodafone to sell its 45% stake in the massive mobile phone company. Based on their ownership, Verizon Communications will receive $3.85 billion in cash and Vodafone will get $3.15 billion. The dividend will be paid on June 25, according to a regulatory filing.
At this time, with its dominance in the telecom industry and managements ability to enhance shareholder interests, we plan to hold the stock. However, we will be analyzing the stock in the next couple days to see whether it is best to sell or continue to hold our position.