AT&T said it is ahead of schedule with its asset monetization program – part of its effort to reduce its debt-to-adjusted EBITDA ratio target.
Specifically, AT&T had a 2019 target to sell $6 billion to $8 billion of non-core assets. With the completion of the recent $4.5 billion sale of a preferred equity interest in a subsidiary that holds cell tower assets, AT&T now has completed a net $15 billion in asset monetization initiatives this year. It has also announced nearly $4 billion in monetization initiatives that are expected to close by mid-2020.
Some additional updates:
- AT&T’s board of directors approved a 2% increase in the company’s quarterly dividend from $0.51 per share to $0.52 per share. On an annualized basis, this equates to a full-year dividend of $2.08, up from $2.04. The increase is consistent with AT&T’s capital allocation strategy announced in October calling for continued modest annual increases in the dividend.
- The company began retiring shares in the fourth quarter and has entered into a $4 billion accelerated share repurchase (ASR) agreement. Through purchases under the ASR, AT&T plans to retire about 100 million shares in the first quarter of 2020.
- AT&T’s board of directors also declared a dividend of $170.1388889 per share on the company’s 5.000% Perpetual Preferred Stock, Series A (representing $0.1701388889 per Depositary Share, each representing a 1/1000th interest in the 5.000% Perpetual Preferred Stock, Series A).
