Vodafone shareholders will get their first dividend payout in six years after a bumper payout from Verizon Wireless, its joint venture with Verizon Communications.
The mobile phone company's share price shot up on Friday after the announcement that it will pay out 2 billion pounds ($3.3 billion) to shareholders.
Analysts hope that this will herald a return to regular dividend payouts.
Vodafone will receive $4.5 billion from a $10 billion dividend approved by the board of Verizon Wireless. It plans to pay shareholders 4 pence per share and pay down its debt with the remaining $1.2 billion
"The timing of this announcement is pleasingly early and Vodafone immediately saying exactly what it will do with it is also welcome news," John Karidis, MF Global analyst, wrote in a note.
"This 4 pence special dividend may well happen every year, and it may well grow."
Verizon , which owns 55 percent of Verizon Wireless to Vodafone's 45 percent, had resisted paying a dividend from the joint venture since 2005.
The decision follows the appointment of a new chief executive at Verizon, Lowell McAdam, who officially takes over next week.
Some analysts believed that Verizon was trying to squeeze Vodafone out of the joint venture, which generates around $1 billion in cash flow a month.
Vittorio Colao, chief executive of Vodafone, said: "Our long term partnership in Verizon's strong and successful wireless business has seen the value of our investment increase significantly over recent years."