Broker snap: Careful with Vodafone´s dividends, Nomura says
"As a result, we think investors need to consider the downside risk for Vodafone’s medium-term dividend commitment. We believe Vodafone’s dividend needs to be rebased unless it is funded directly from Verizon Wireless cash flows - in which case the special dividend will be discontinued. We forecast a total dividend of 10p for fiscal year 2014, down from 14.2p for fiscal year 2013 and 13.5p for fiscal year 2012."
ya right??? lol
Vodafone and Verizon Communications are set to be on the receiving end of an $8.5bn payment from their joint venture in Verizon Wireless.
The North American mobile carrier said that it would be issuing the payment by the end of the year as part of an effort to distribute revenues amongst its ownership group. Vodafone owns 45 per cent of Verizon Wireless, while Verizon Communications controls a 55 per cent stake.
"The distributions will be paid in one or more tranches, with each tranche paid in proportion to the owners’ partnership interests on the payment date," Verizon said in announcing the payments.
The payments will arrive as Vodafone continues a network update which will include merging its wireless broadband networks with assets owned by fellow carrier O2.
For Verizon, the payments come as the company continues to work on restoring its network in the US Northeast following Superstorm Sandy and severe thunderstorms which have hit the East Coast in recent weeks.
The company said that it had laid some 14 million feet of wire since the storm hit and purchased some 8,500 poles as part of its recovery efforts. Verizon reported that in the New York and New Jersey areas hit hardest by the storm, nearly all of its facilities have seen their power restored and are no longer reliant on generators.
Recovery of services was made a top priority in the wake of the storm as wireless networks have played vital roles in connecting citizens and rescuers in areas where landline service have been disrupted.
While Verizon has not disclosed its own costs from the recovery effort, authorities believe that the storm will ultimately be amongst the costliest natural disasters in US history.