Boston, MA 02/19/2014 (wallstreetpr) – Verizon Communications Inc. (NYSE:VZ) has announced plans to offer 1.28 billion of its Verizon common stock to Vodafone shareholders as part of its acquisition of the 45% stake that Vodafone owned in Verizon wireless. Verizon plans to close the transaction and issue the shares as of February 21, 2014 awaiting satisfaction of customary closing conditions and approval from England and wales High Court of justice.
Verizon Communications Inc. (NYSE:VZ) being one of the biggest companies in the telecom sector offers some of the best dividends in the industry. The Company’s free cash flow of has been improving in the recent past thus the reason behind the improved dividends. The company has been trying to maintain the high dividend rates through a reduction in cost expenditures as well as financial expenditures
Vodafone Group PLC (ADR) (NASDAQ:VOD) plans to return approximately $84 billion of its net proceeds of $130 billion to its shareholders, two thirds of the earnings will be returned in form of stock. This is the largest ever single return to shareholders in the industry. The $130 billion acquisition marked the end of Vodafone operations in the US market as it tries to focus more on emerging markets in Europe &India and marked an all-time corporate acquisition behind acquisition of Mannesmann by Vodafone.
Verizon Communications Inc. (NYSE:VZ) paid total dividends amounting to $6 billion over the 2013 fiscal period while also repurchased back its common stock amounting to $153 million. This essentially means the total amount returned over the twelve month period amounted to over $6.1 billion. The company debt seems to be on an all-time high reaching high of $49 billion having repaid some of it, totaling $8 billion. The massive debt has been attributed to its acquisition of Vodafone stake in Verizon wireless.
Verizon Communications Inc. (NYSE:VZ) slumped in Tuesday trading session by 1.14% to close the day at $45.98 a share.
