NEW YORK (TheStreet) - Telecom giant Verizon Communications (VZ) has discussed the possibility that its Wireless business could start paying a dividend to Vodafone (VOD), according to published media reports.
The move marks a shift in the company's recent financial strategy and the dividend talk pushed up Vodafone's stock on Friday.
Vodafone, which holds a 45% stake in Verizon Wireless, has not received a dividend from the mobile operator since 2005, according to The Financial Times. The newspaper reports that Verizon Wireless may start paying a dividend to both Vodafone and Verizon Communications in 2012.
Verizon Communications' finance director John Killian said that dividend payments may resume in 2012 because Verizon Wireless would have paid down its debt next year.Verizon Wireless was set up as a joint venture between Verizon Communications and Vodafone in 2000. In other Verizon news, rumors of a CDMA version of Apple's (AAPL) iPhone that could run on the telco's network surfaced again this week, pushing Apple's shares to a new high. Apple currently sells the iPhone via and exclusive deal with AT&T (T). There have already been calls for Apple to extend its popular iPhone to Verizon, capitalizing on a new base of wireless subscribers.
-- Reported by James Rogers in New York Follow James Rogers on Twitter and become a fan of TheStreet on Facebook.
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