Dividend Increase Announcement
On December 13th, AT&T announced a dividend increase of 2%. This will increase their dividend per quarter from $0.51 to $0.52. It is payable on February 3rd for shareholders of record on January 10th. The new quarterly dividend represents an annualized dividend amount of $2.08 per share as compared to the current annualized dividend amount of $2.04 per share.
AT&T Dividend Information
Annual Dividend: $2.08
Dividend Yield: 5.45%
Dividend Growth History: 34 years
Payout Ratio: 57.78%
Dividend Increase Affect On More Dividends
I am currently holding 50.65 shares of AT&T in the More Dividends portfolio. With this 2% increase it will add an additional $2.02 to my projected annual dividend income and this doesn’t even take into account the compounding factor!
AT&T is a company with a very long history. They have had some ups and they have had some downs. For the past few years it would appear that the company has mostly been trading sideways. Like a lot of other investors, I initially got interested in the company because of the healthy dividend that they pay. I initiated my position but with the announcement of the acquisition of Time Warner I had decided to strengthen that position.
So for now, I am happy with the current position. I will allow it to reinvest the dividends and to keep growing. If I see the share price drop back down then I will consider adding more to the position. My biggest concern with this is that I think it may be a number of years before I see this happening. I think their move in the content and content production space will help them continue to grow their revenue for many more years to come. Only time will tell!
Regardless of how large or small, I love all dividend increases. That is how we end up with More Dividends 😉
Do you currently hold any stock in AT&T? What do you think of this dividend increase? Just let me know in the comments.
As always I look forward to reading all of your comments and questions, until then….. happy investing!
-Jason from MoreDividends.com
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