Verizon Wireless, the biggest U.S. mobile service provider, said on Monday it would pay its parents Verizon Communications and Vodafone Group Plc a dividend of $7 billion in June, surprising some analysts who had not expected a big payout. The dividend comes amid mounting speculation Verizon could buy Vodafone’s stake in the venture if they can agree on a price. Reuters reported on April 24 that Verizon was preparing a $100 billion bid for the stake but investors have said they expect Vodafone to seek a higher price. The dividend decision follows recent comments from Verizon Chief Executive Lowell McAdam to JP Morgan analysts that he did not want to pay a premium for the stake and that the two owners could face a “lean” year in terms of the Verizon Wireless dividend.
