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7 Impressive Facts About AT&T’s Dividend

By Dividend.com August 31, 2012, 08:52:27 AM EDT

Industry bellwether AT&T ( T ) is a staple to many dividend portfolios as the company boats a key presence in the telecom space along with the financial firepower to back it. This well-known Dallas-based giant provides wireless and wired telecommunications services in the United States and worldwide, making it the ideal candidate for income investors who value stability; the company also holds a spot in countless portfolios, mutual funds, and ETFs as it belongs to the Dow Jones Industrial Average. Furthermore, AT&T is highly regarded among dividend investors as it has consistently increased its distribution payed out to shareholders for 25 years.

Not only is the company's payout record impressive, so too is the size of its monstrous distribution. As such, below we highlight seven impressive facts about AT&T's dividend:

1) In 2011, AT&T paid out in total $10.17 billion in dividends. To put this figure into perspective, it totals out to roughly $27.9 million per day or just about $322 returned to shareholders every second .

2) With an annual distribution topping $10 billion, AT&T's dividend dwarfs a number of nations' annual gross domestic product. This telecom-giant payed out a dividend which rivals the size of the economies of the Bahamas ($8 billion), Madagascar ($10 billion), and The Republic of Macedonia ($10 billion).

3) In 1985, AT&T payed out a total of $0.49 per share in dividends. Compared to its 2011 payout of $1.72 per share, this marks an impressive 249% increase in its annual distribution payout. What's even more impressive is that AT&T's dividend payout has averaged an annual growth rate of 9.6% since 1985, offering up tremendous value to long-term investors looking to beef up their current income.

4) Investors of all walks and styles have embraced AT&T in their portfolios thanks to the firm's global presence and attractive dividend profile. Top institutional holders of AT&T stock include the Vanguard Group, Evercore Trust Company, Capital Research Global Investors, and BlackRock. AT&T's largest individual shareholder, Randall Stephenson with about 941,000 individual shares, will receive cash dividends of about $1.7 million in 2012 from his holdings.

5) Boasting a market cap of $213 billion, its easy to see how AT&T's hefty cash distribution of $10 billion in 2011 dwarfs more than a handful of well-known brand names. AT&T's most recent annual dividend payout rivals the total market capitalization of Xerox ($9.6 billion), SiriusXM ($9.7 billion), Harley-Davidson ($9.8 billion), Dr. Pepper Snapple ($9.4 billion), and Nokia ($10.4 billion).

6) The sheer dollar amount of AT&T's historical payouts is absolutely massive; since 1987, the company has paid out total cash dividend of about $90 billion.

7) What can you buy with AT&T's most recent quarterly payout of $2.58 billion? How about the New York Yankees salaries for 13 years (assuming an annual payroll of $198 million). You can also afford to buy 1.6 million ounces of gold, 5.2 million iPads, or retire about 0.016% of the U.S. debt.

Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .




The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.


This article appears in: Investing, Stocks

Referenced Stocks: T



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