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AT&T cuts dividends nearly 46%, shifts billions to stock buybacks to boost shareholder value.

Company Fundamentals
30 Oct 2026, 20:47 WIB
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AT&T cuts dividends nearly 46%, shifts billions to stock buybacks to boost shareholder value.

AT&T has reduced its total dividend payments by 45.7% from $15.07 billion in 2021 to $8.18 billion in 2025, while increasing stock buybacks from $215 million in 2024 to $6.575 billion in 2025. The company maintains a frozen dividend rate of $0.2775 per share since 2022 but uses buybacks to manage shareholder returns flexibly. Management plans to keep dividends steady through 2028, focusing on buybacks, fiber investments, and debt reduction, with buybacks expected to reach $10 billion in 2026. This strategy prioritizes flexible capital allocation over dividend growth, impacting income investors but potentially enhancing long-term shareholder value.

AT&T shares trade at USD 21.44 on Pluang as of Oct 31, 2026, showing a 2.49% gain in one day. The stock holds a dividend yield of 5.31%, reflecting steady income despite the dividend cut. Market activity shows 57% of orders are sell, indicating mixed investor sentiment.

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