AT&T Raises Payout, Buys Back $15.2 Billion in Stock

AT&T Raises Payout, Buys Back $15.2 Billion in Stock (Update1)

By Julie Alnwick

Dec. 11 (Bloomberg) -- AT&T Inc., the biggest U.S. phone company, raised its dividend 13 percent and decided to buy back as much as $15.2 billion in stock after three straight quarters of accelerating sales growth.

The quarterly payout climbed to 40 cents from 35.5 cents, the San Antonio-based company said today in a statement. On an annual basis, the increase is the largest in AT&T history.

AT&T is rewarding investors after winning customers with Apple Inc.'s iPhone, which blends the best-selling iPod media player with a Web-enabled handset and made its debut in June. That helped the company gain 2 million new wireless customers last quarter, cementing its lead over rival Verizon Wireless.

AT&T plans to buy back as many as 400 million shares by 2009. The company repurchased more than $13 billion in stock under its buyback announced in 2006.

AT&T shares climbed 60 cents to $38.50 in early trading after closing at $37.90 yesterday on the New York Stock Exchange. They had climbed 6 percent this year before today.

The dividend will be payable Feb. 1 to shareholders of record as of Jan. 10.

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