AT&T Says It Has All the Cash It Needs to Handle Downturn
April 07 2020 - 1:55PM
Dow Jones News
By Drew FitzGerald
AT&T Inc. reassured investors its cash cushion is ample
enough to ride out the current virus-induced economic downturn.
The telecom and media giant is one of the largest dividend
payers and one of the most indebted corporate giants. It had a net
debt total of $151 billion at the end of last year. It pays out $15
billion in annual dividends. The dividend yield on common stock is
nearly 6.8% as of Tuesday.
The Dallas company told stockholders its December-end $12
billion cash pile showed its financial strength and said it has "no
need or plans" in 2020 to use the $15 billion revolving credit
facility it has on hand.
AT&T also said "it looks forward to continuing to pay a
quarterly dividend" but skipped any mention of dividend increases,
which the company has provided for the past 36 years. The dividend
yield on common stock is nearly 6.8% as of Tuesday.
AT&T's shares gained 4% to $30.62 midday amid a broader
market rally. The company reports first-quarter earnings on April
22.
Write to Drew FitzGerald at Drew.FitzGerald@WSJ.com
(END) Dow Jones Newswires
April 07, 2020 13:40 ET (17:40 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
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