AT&T Announces 2.4 Percent Dividend Increase, 300 Million Share Repurchase Authorization
27th consecutive annual increase in the quarterly dividend reflects continued commitment to returning value to stockholdersDallas, Texas, December 17, 2010 -- AT&T Inc. (NYSE:T) announced today that its board of directors has approved a 2.4 percent increase in the company's quarterly dividend and a 300 million share repurchase authorization.
AT&T directors increased the quarterly dividend rate from $0.42 to $0.43 a share on a quarterly basis, which would be an increase from $1.68 to $1.72 a share on an annualized basis.
At the same time, AT&T announced a new share repurchase authorization for 300 million shares. The authorization represents approximately 5 percent of outstanding shares and has no expiration date.
"This dividend increase, combined with the repurchase authorization, reflects the board's confidence in our ability to generate strong cash flows," said Randall Stephenson, chairman and CEO of AT&T. "We have continued to invest to deliver the connectivity that is vital to the lives and business of our customers, and I'm proud that, at the same time, sound financial management has enabled us to lead the industry in returning cash to stockholders, even while reducing debt."
Today's announcement reflects AT&T's continued commitment to a disciplined financial policy, which allows the company to strategically invest in its business and return cash to stockholders while maintaining a strong balance sheet.
The dividend will be payable on Feb. 1, 2011 to common stockholders of record on Jan. 10, 2011. The timing and nature of share repurchases are subject to market conditions and applicable securities law.
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AT&T Inc. (NYSE:T) is a premier communications holding company. Its subsidiaries and affiliates - AT&T operating companies - are the providers of AT&T services in the United States and around the world. With a powerful array of network resources that includes the nation's fastest mobile broadband network, AT&T is a leading provider of wireless, Wi-Fi, high speed Internet and voice services. A leader in mobile broadband, AT&T also offers the best wireless coverage worldwide, offering the most wireless phones that work in the most countries. It also offers advanced TV services under the AT&T U-verse® and AT&T | DIRECTV brands. The company's suite of IP-based business communications services is one of the most advanced in the world. In domestic markets, AT&T Advertising Solutions and AT&T Interactive are known for their leadership in local search and advertising. In 2010, AT&T again ranked among the 50 Most Admired Companies by FORTUNE® magazine.
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Cautionary Language Concerning Forward-Looking Statements
Information set forth in this press release contains financial estimates and other forward-looking statements that are subject to risks and uncertainties, and actual results might differ materially. A discussion of factors that may affect future results is contained in AT&T's filings with the Securities and Exchange Commission. AT&T disclaims any obligation to update and revise statements contained in this news release based on new information or otherwise.
Posted: December 17, 2010