Vodafone special dividend could be delayed

Investors in Vodafone Group who may be waiting for Verizon Communication to approve a dividend from their US mobile-phone venture will have to hold out longer, according to two people with knowledge of the matter, Bloomberg is reporting.

Verizon Wireless's board doesn't plan to discuss a potential dividend at a Sept. 19 meeting, said the people, asking not to be identified because the agenda is confidential.

Nevertheless, a decision could still be taken at a December gathering or at an unscheduled board meeting anytime, one of the people said.

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Will Draper, an analyst at Espirito Santo Investment Bank, wrote in a note last month that he anticipated Verizon Communications to increase the dividend from the venture this year by at least 5%.

Last week, Verizon Communications itself raised its quarterly dividend by 3%, the sixth consecutive year of increases.

Vodafone paid a special dividend of £2bn ($3.2 billion) last year after the joint-venture itself paid out a $4.5bn dividend.

Previously, Verizon had withheld the dividend from the partnership to focus on paying down debt.

AB