AT&T; Increases Its Dividend for 1st Time Since Divestiture in 1984
NEW YORK — American Telephone & Telegraph Co. said Wednesday that its board raised the company’s quarterly dividend to 33 cents per share from 30 cents--the first time AT&T; has lifted its payout since the Bell System was broken up in 1984.
Chairman Robert E. Allen said the increase reflects the company’s confidence that 1990 “will be another year of revenue and profit growth.”
The company’s stock, the most widely held in the United States, rose 12.5 cents to close at $41.875 a share. AT&T; has 2.6 million registered shareholders and 1.1 billion shares outstanding.
The higher quarterly dividend is payable May 1 to shareholders of record March 30.
AT&T; set an annual dividend of $1.20 when it divested its seven regional Bell telephone companies in 1984. Since then, it has faced long-distance competition from newcomers to the business, such as MCI Communications Corp. and US Sprint.
AT&T; Vice Chairman Morris Tanenbaum said last week that the telecommunications giant, whose long-distance market share declined to about 66% in 1989 from about 90% at divestiture, will work to stem the erosion.
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