Top U.S. phone company AT&T Inc (T) raised its quarterly share dividend by 2.5% to 41 cents a share, despite recent job cuts and a plan to cut spending in 2009 due to a slower economy.
A&T said on Friday that the increase would raise the annual dividend to $1.64 from $1.60, and would be payable Feb. 2 to
stockholders as of Jan. 9.
The announcement comes a week after AT&T said it will eliminate 12,000 jobs, or about 4% of its workforce, to
deal with a decline in traditional phone sales as well as a weaker economy.
AT&T Chief Executive Randall Stephenson said in a statement that the dividend reflects the board's confidence in its
financial strength.
Shares of AT&T fell 18 cents, or 0.64 percent, to $27.76 on the New York Stock Exchange early Friday afternoon.
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