Bad Posture

Verizon's CFO just finished speaking at an investor conference. He was asked about a dividend out of Verizon Wireless, which is of particular interest to Vodafone holders like myself. Vodafone owns 45% of Verizon Wireless. He says that Verizon could pay a dividend without taking a dividend from Verizon Wireless until 2012. It seemed to me he was getting irritated as the analyst tried to dig deeper.

The only reason that I could think of that the CFO was getting irritated is because he is posturing. Verizon wants to choke off dividends to Vodafone so that they have more leverage in trying to buy Vodafone's share of the business. That is a good thing in my book, as a deal would make Vodafone's stock soar. The posturing seems silly to me as Vodafone is not hard up for cash and could easily pay their dividend.

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