AT&T Boosts Dividend by 2.3%, Announces Share Buyback (T)

By Staff,

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Telecom superpower AT&T Inc. ( T ) on Friday said its board of directors has approved a 2.3% increase in its quarterly dividend payout.

The Dallas-based company boosted its dividend from 42 to 43 cents per share. The new dividend will be payable Feb. 1, 2011, to shareholders of record as of Jan. 1, 2011.

In addition, AT&T said it plans to buy back 300 million of its own shares, which represents around 5% of its total outstanding shares.

AT&T stock was down slightly in afternoon trading Friday.

The Bottom Line
We have been recommending shares of AT&T ( T ) since Mar.12,2009, when the stock was trading at $23.35. The company will now have a 5.88% dividend yield, based on the higher dividend payout and last night's closing stock price of $29.23.

AT&T Inc. ( T ) is a "Recommended" dividend stock, holding a DARS™ Rating of 3.5 out of 5 stars.

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 Nasdaq, Inc.

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This article appears in: Investing Stocks
Referenced Stocks: T

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