AT&T Provides Update on Capital Allocation Strategy, Increases Quarterly Dividend by 2 Percent
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.
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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