AT&T Provides Update on Capital Allocation Strategy, Increases Quarterly Dividend by 2 Percent
December 13 2019 - 1:40PM
Business Wire
Quarterly Dividend Increases for 36th
Consecutive Year
AT&T Inc.* (NYSE:T) today provided an update to shareholders
regarding the status of its capital allocation strategy.
AT&T’s board of directors today approved a 2% increase in
the company’s quarterly dividend. The dividend is payable on Feb.
3, 2020, to stockholders of record at the close of business on Jan.
10, 2020. AT&T’s quarterly dividend will increase from $0.51
per share to $0.52 per share. On an annualized basis, this equates
to a full-year dividend of $2.08, up from $2.04. The increase is
consistent with AT&T’s capital allocation strategy announced in
October calling for continued modest annual increases in the
dividend.
Other updates to the company’s capital allocation strategy
include:
- The company began retiring shares in the fourth quarter and has
entered into a $4 billion accelerated share repurchase (ASR)
agreement. Through purchases under the ASR, AT&T plans to
retire about 100 million shares in the first quarter of 2020.
- AT&T also remains on track to hit its 2019 net
debt-to-adjusted EBITDA ratio target in the 2.5x range. It expects
a leverage ratio of between 2.0x to 2.25x by the end of 2022.
- The company has supported its deleveraging goals with an asset
monetization program that is well ahead of target. At the beginning
of 2019, AT&T said it planned to monetize $6 billion to $8
billion from non-core assets. With the completion of the recent
$4.5 billion sale of a preferred equity interest in a subsidiary
that holds cell tower assets, AT&T now has completed a net $15
billion in asset monetization initiatives this year. It has also
announced nearly $4 billion in monetization initiatives that are
expected to close by mid-2020.
AT&T’s board of directors also declared a dividend of
$170.1388889 per share on the company’s 5.000% Perpetual Preferred
Stock, Series A (representing $0.1701388889 per Depositary Share,
each representing a 1/1000th interest in the 5.000% Perpetual
Preferred Stock, Series A). The dividend is payable on February 3,
2020, to stockholders of record at the close of business on January
17, 2020. The dividend is prorated to cover the time period from
initial settlement on December 12, 2019, to the dividend payment
date.
*About AT&T
AT&T Inc. (NYSE:T) is a diversified, global leader in
telecommunications, media and entertainment, and technology. It
executes in the market under four operating units. WarnerMedia is a
leading media and entertainment company that creates and
distributes premium and popular content to global audiences through
its consumer brands including: HBO, Warner Bros., TNT, TBS, truTV,
CNN, DC Entertainment, New Line, Cartoon Network, Adult Swim,
Turner Classic Movies and others. AT&T Communications provides
more than 100 million U.S. consumers with entertainment and
communications experiences across TV, mobile and broadband
services. Plus, it serves nearly 3 million business customers with
high-speed, highly secure connectivity and smart solutions.
AT&T Latin America provides pay-TV services across 11 countries
and territories in Latin America and the Caribbean, and is the
fastest growing wireless provider in Mexico, serving consumers and
businesses. Xandr provides marketers with innovative and relevant
advertising solutions for consumers around premium video content
and digital advertising through its AppNexus platform.
AT&T products and services are provided or offered by
subsidiaries and affiliates of AT&T Inc. under the AT&T
brand and not by AT&T Inc. Additional information is available
at about.att.com. © 2019 AT&T Intellectual Property. All rights
reserved. AT&T, the Globe logo and other marks are trademarks
and service marks of AT&T Intellectual Property and/or AT&T
affiliated companies. All other marks contained herein are the
property of their respective owners.
Cautionary Language Concerning Forward-Looking
Statements
Information set forth in this news release contains
forward-looking statements that are subject to risks and
uncertainties, and actual results may differ materially. A
discussion of factors that may affect future results is contained
in AT&T’s filings with the Securities and Exchange Commission
and the prospectus and preliminary prospectus supplement related to
the Offering. AT&T disclaims any obligation to update or revise
statements contained in this news release based on new information
or otherwise.
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version on businesswire.com: https://www.businesswire.com/news/home/20191213005426/en/
Erin McGrath AT&T Inc. Phone: (214) 862-0651 Email:
erin.mcgrath@att.com
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