Dividend increase AT&T (T) – December 2019
On December, 13 AT&T (T) announced a 2% increase in its quarterly dividend. The dividend is raised from $0.51 to $0.52. The dividend pay date is February 3, 2020 to shareholders of record on January 10, 2020 (ex dividend January 9, 2020). This is the 36th Consecutive Annual Increase.
The increase is consistent with AT&T’s capital allocation strategy announced in October calling for continued modest annual increases in the dividend.
The new dividend amount represents an annualized dividend amount of $2.08 per share, up from $2.04. The dividend yield on current price is 5.45 %.
My Vrijheid Fonds consist of 155 shares of T, my annual dividends will increase by €4.75 ($5.27). For 2019 my dividends will, of course, not be affected ;-).
My projected annual total amount from my shares of T will be €247 ($274) after taxes.
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.
Furthermore 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.