Wednesday, November 7, 2012
Dividend Increase: T
AT&T (T) is increasing its quarterly dividend by 2.3%, from $0.44 to $0.45 per share, putting the company on track for its 29th consecutive year of dividend growth. Given that I own 55 shares of T, my quarterly dividend increases from $24.20 to $24.75, which will add an extra $2.20 to my annual dividend income. The increase will be effective with the first dividend payment in 2013. This dividend increase also boosts my yield on cost to 6.55%.
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DGM,
ReplyDeleteNo surprise here. Follows the history, and T will likely continue with this type of growth going forward.
I'm okay with it, as I anticipated this and purchased for the high yield to supercharge my dividend payouts.
Best wishes!
Dividend Mantra: I agree, no surprise at all. I am also okay with the small increase, given that the stock gives me a good dividend despite being a small position in my portfolio.
DeleteI'm a fan of T , and with the recent pullback, it's getting close to looking attractive. I might grab some shares if it pulls back some more.
ReplyDeleteThe small dividend increase is kind of expected, but not too bad since the yield is already so high, like you mentioned. T is also relatively low-risk, and I would personally prefer to own T over bonds.
FI Fighter: Thanks for your comment. I have also noticed the recent pullback in T, although I have no plans at the moment to increase my position. I agree that T is relatively low-risk; the stock price will bounce around a bit, but the dividend is safe and stable.
DeleteAs a fellow stock holder of T, I am happy to hear of the increase. I will probably buy more if it continues to pullback. But I wouldnt say it is low risk...it is lower risk than most stocks, but I think VZ and T both have some exposure to tech, and tech is totally unpredictable, IMO. Who knows what the next iteration of the smartphone will look like? Something new is coming out all the time.
ReplyDeleteHigh Yield Soldier: I hold a similar view -- I was thinking of "low risk" relative to most other stocks. Telecoms do have some tech exposure, which increases their risk, but I don't foresee radical changes in wireless communications anytime soon (e.g., within the next 5 years). Longer term, things could certainly change as new technology is developed.
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