DALLAS - AT&T Inc. (NYSE:T), a major telecommunications company, has announced the declaration of quarterly dividends by its board of directors. The dividends are for both the company's common shares and two series of preferred stock, with the payment date set for August 1, 2024.
The declared dividend for the common shares is $0.27 per share. In addition, dividends for the 5.000% Perpetual Preferred Stock, Series A, and the 4.7% Perpetual Preferred Stock, Series C, were also declared. Shareholders of Series A preferred stock will receive $312.50 per preferred share, which equates to $0.3125 per depositary share. Series C preferred stockholders are set to receive $296.875 per preferred share, or $0.296875 per depositary share.
AT&T has a long history of connectivity and innovation, serving over 100 million U.S. families and nearly 2.5 million businesses. The company has evolved from its origins over 140 years ago, now offering cutting-edge 5G wireless and multi-gig internet services.
In other recent news, AT&T's CEO, John Stankey, has proposed that Big Tech companies contribute to the Universal Service Fund, a government initiative subsidizing telecom and broadband services. Stankey shared his stance at a telecom industry forum, suggesting these companies share the responsibility of ensuring telecom and broadband services remain accessible and affordable for all. This proposal could lead to a new funding model for the program.
In a separate development, AT&T is involved in a legal challenge against the reinstatement of net neutrality rules by the Biden administration. The telecommunications industry groups, including AT&T, have filed challenges in multiple U.S. circuit courts, arguing that the Federal Communications Commission is overreaching its authority to regulate internet access for Americans.
On the financial front, AT&T has seen significant stock trading activity by Congressman Mike Kelly and Congress member Carol Devine Miller, who both recently sold their shares in the company. These transactions were part of their regular financial activities, reported in accordance with law to maintain transparency.
Finally, AT&T's multiyear growth strategy was the focus of CEO John Stankey's presentation at the 52nd Annual J.P. Morgan Global Technology, Media and Communications Conference. The company's growth strategy includes significant investments in its infrastructure, with capital investments expected to be in the $21-22 billion range for 2024.
InvestingPro Insights
AT&T Inc. (NYSE:T) recently announced its latest dividend payouts, shining a spotlight on its commitment to shareholder returns. In light of this, certain metrics and InvestingPro Tips can provide investors with a deeper understanding of the company's financial standing and market performance.
The company boasts a substantial market capitalization of $134.73 billion, underlining its significant presence in the telecommunications sector. This is complemented by a strong dividend yield of 5.94%, which is particularly attractive to income-focused investors and aligns with the company's history of consistent dividend payments, including maintaining dividend payments for 41 consecutive years—an InvestingPro Tip worth noting.
Another key metric is the Price/Earnings (P/E) Ratio, which currently stands at 12.9. This ratio is a staple for investors gauging the value they receive per share relative to the company's earnings. AT&T's P/E ratio suggests a valuation that could be appealing to value investors, especially when considering the adjusted P/E ratio for the last twelve months as of Q1 2024, which is even lower at 9.02.
Moreover, the company's stock is trading near its 52-week high, at 99.84% of this benchmark, indicating strong recent performance and possibly signaling investor confidence in AT&T's market position and future prospects.
For those looking to delve deeper into AT&T's financials and stock performance, InvestingPro offers additional insights. There are more InvestingPro Tips available for AT&T at https://www.investing.com/pro/T, including observations on shareholder yield and stock volatility. To access these valuable tips and more, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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