France Telecom Dividend Safe Thru 2012

France Telecom (FTE: 20.97 +0.53%) allayed investor concerns yesterday when the company announced that they would maintain their current dividend through 2012.

 

Shares in FTE were up 6.9% in mid-morning trading on the news.

 

France Telecom stock currently yields 4.2%, but investors have been concerned that the telecom giant would cut the dividend or shift to a stock repurchase policy. However, the Board of Directors has committed to maintaining an annual dividend of €1.40 for the coming three years..

 

Commenting on the first half results, France Telecom Chief Executive Officer Stéphane Richard stated: “Once again, the Group has shown its resilience despite the unsettling economic conditions in our main markets. The downturn in revenues was more limited in the second quarter than previously, and we continued to attract even more customers … this trend holds promise for the future because it affects all of our operations, especially mobile services in France, Spain and countries in Africa and the Middle East.”

 

On July 28, 2010 the Board of Directors decided to pay an interim dividend based on first half 2010 results. That interim dividend of €0.60 per share will be paid on September 2, 2010. The ex-dividend date will be August 30, 2010.

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