News
DALLAS (AP) – AT&T Inc. said Friday it has boosted its quarterly dividend 2.5 percent, marking the 25th straight year the telecom company has raised its payout to shareholders.
The latest increase comes as some other major corporations are cutting their dividends because of the financial crisis and as AT&T itself is cutting jobs and slashing spending to cope with the downturn.
AT&T said its quarterly dividend will rise to 41 cents a share from 40 cents a share. On an annual basis, that translates to a move to $1.64 a share from $1.60 a share. The dividend will be payable Feb. 2, 2009, to holders of AT&T's common stock on Jan. 9, 2009.
AT&T Chief Executive Randall Stephenson said in a statement that the latest increase "reflects our board's continued confidence in AT&T's financial strength and underscores our commitment to returning value to stockholders."
The economic malaise has forced other big companies, including Bank of America Corp. and scores of other financial firms, to slash their dividends as they grapple with the slowdown and try to save money. While AT&T is not cutting its dividend, the company, which remains profitable, is retrenching: Last week the company revealed that it plans to cut 12,000 jobs, or 4 percent of its 300,000 workers.
A sharp decline in landline phone customers is forcing the company to focus more on parts of the business that offer cell phone service, such as to Apple Inc.'s popular iPhone, and broadband Internet access.
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