AT&T Dividend Forecast

AT&T [[T]] is expected to announce a dividend increase tomorrow. This will mark the 27th consecutive year that the telecom giant has raised their annual dividend.


AT&T is already the highest yielding stock in the Dow Jones index, so investors shouldn’t expect a significant dividend increase this year.


We would expect AT&T to announce an increase that is inline with their recent dividend history. Each of the past two years, AT&T has raised their quarterly dividend by only $.01 per share. It would be surprising if the dividend increase is any larger (or smaller) than that.


Even a marginal $.01 per share increase will push AT&T’s dividend yield to 5.9% based on today’s stock price.


Tomorrow’s dividend increase could be the icing on the cake for AT&T investors in 2010. AT&T’s stock price has gained 4% this year which isn’t great, but much better than the declines experienced in 2008 and 2009.

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