Infrastructure
AT&T Dividend Declaration, Prelude to Hike Right Before Year-End
Published:
Last Updated:
AT&T Inc. (NYSE: T) has just initiated its fourth payment of a $0.44 per common share quarterly dividend. We were not expecting a dividend hike this month, but we are formally setting December for the next dividend hike now.
Verizon Communications Inc. (NYSE: VZ) has raised its dividend in the last month with a declaration date of September 6. That was a 3% raise to $0.515 from $0.50 per common share per quarter.
If we our expectations pan out on the coming AT&T hike in December then realistically that payout will rise to $0.45 or $0.455 per common share per quarter. AT&T has lifted its dividend by 1 penny per quarter once a year for each of the past four years.
With a Thomson Reuters consensus earnings estimate of $2.57 EPS for 2013, AT&T’s payout ratio would be about 70% if the hike just goes up to $0.45 from $0.44. That is a high payout ratio, but it is not as if AT&T has to save all of its cash for endless acquisitions at this point even if it wants to (and needs to) buy more wireless spectrum.
JON C. OGG
Want to Retire Early? Start Here (Sponsor)
Want retirement to come a few years earlier than you’d planned? Or are you ready to retire now, but want an extra set of eyes on your finances?
Now you can speak with up to 3 financial experts in your area for FREE. By simply clicking here you can begin to match with financial professionals who can help you build your plan to retire early. And the best part? The first conversation with them is free.
Click here to match with up to 3 financial pros who would be excited to help you make financial decisions.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
