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.

Try 6 free issues of MoneyWeek today

Get unparalleled financial insight, analysis and expert opinion you can profit from.

Start your trial

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Sign up

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