AT&T Stock Rises as CEO Highlights Dividend and Growth Plans
AT&T’s stock climbed in early Tuesday trading after the company shared details of its growth strategy, emphasizing earnings, cash flow, and network expansion. The wireless carrier is also moving forward with its plan to divest its DirecTV stake and focus on its core 5G and fiber businesses.
A Shift to Telecom Focus
Following its $43 billion deal with Warner Bros. Discovery in 2022, AT&T has fully committed to being a telecom-focused company. The Dallas-based group is investing heavily in 5G wireless and fiber internet services as part of this shift.
AT&T aims to:
Double its fiber network: Expand to 50 million fiber locations by 2029.
Enhance 5G coverage: Reach 200 million homes across the U.S.
The company expects to spend $22 billion on capital investments over the next three years to achieve these goals.
Commitment to Shareholders
In addition to its network expansion, AT&T plans to maintain its annual dividend of $1.11 per share. Over the next three years, the company aims to return $40 billion to shareholders through dividends and stock buybacks.
The company also raised the lower end of its 2024 earnings forecast, projecting profits of $2.20 to $2.25 per share.
CEO’s Vision for Growth
CEO John Stankey expressed confidence in AT&T’s future:
“Over the last four years, we’ve delivered sustainable and profitable subscriber growth, earned strong returns on our network investments, and improved our financial position. Our focus is on putting customers first to become America’s leading connectivity provider."
Stankey highlighted plans to modernize the wireless network, expand fiber coverage to over 50 million locations, and reward shareholders.
Stock Performance
AT&T shares rose 2.3% in premarket trading, suggesting an opening price of $23.42. If this trend holds, the stock will have gained around 34% in 2024.
This momentum underscores investor confidence in the company’s long-term growth strategy and focus on delivering value to both customers and shareholders.
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