AT&T increases dividend, confirms new share buybacks

In line with the growth target strategy outlined in October, AT&T has increased its quarterly dividend and confirmed it has entered into a new USD 4 billion share buyback programme. The quarterly dividend will go up by 2 percent, to USD 0.52 from 0.51 per share, taking the full-year dividend to USD 2.08 from 2.04. Under the new accelerated share repurchase agreement, AT&T plans to retire about 100 million more shares in the first quarter of next year. 

The company said it remains on track to hit its 2019 net debt-to-adjusted EBITDA target in the 2.5x range, and that it expects a leverage ratio of 2.0x to 2.25x by the end of 2022. 

AT&T also noted that its asset monetisation programme was ahead of target. The company had said earlier this year that it wanted to monetise USD 6-8 billion from non-core assets. With the completion of the recent USD 4.5 billion sale of a stake in a subsidiary that holds cell tower assets, AT&T has now completed a net USD 15 billion in asset monetization initiatives this year. It also plans nearly USD 4 billion in monetization initiatives expected to close by mid-2020.   

Finally, AT&T’s board of directors declared a dividend of USD 170.14 per share on the company’s 5 percent perpetual preferred stock, Series A.