Here is some indirect good news regarding Verizon today. Vodafone, the third largest mobile carrier in the world, and number one carrier in the world for revenue, will now be receiving a $4.5 Billion Dollar dividend payment from Verizon Wireless on January 31st 2012 and regularly from now forward. This is because Verizon Wireless is only partly owned by Verizon Communications Inc., who holds a 55% share in the company. Vodafone holds the other 45%, and now Verizon must pay its dividend share to Vodafone, that has been withheld since 2005. This dividend was previously withheld so that Verizon could focus on upgrading its 3G and LTE networks, and paying off its debt.
How is this good news you may wonder? The reason that Verizon can now begin paying this dividend to Vodafone is because Verizon Wireless is now debt free. Furthermore, the other $5.5 Billion in dividend money will now continue to go to Verizon Communications Inc. Even though they have to pay out that big dividend, being debt free is a great thing for any company, or individual for that matter. Now we will see if Verizon decides to pass on any of that success to their customers.