T-Mobile CEO After Issuing First Dividend: ‘We’re Outperforming This Whole Sector’
The year 2023 has not been quite a lucky year for the telecom industry, as some of its biggest names have substantially under performed.
While Verizon stock has fallen by 12%, AT&T stocks are down 20% year to date.
However, T-Mobile has comparatively held up quite well, with its stocks remaining roughly flat since the year began.
T-Mobile hit a milestone on Wednesday while announcing that they are going to issue their first-ever dividend to the shareholders.
“We’re outperforming this whole sector on growth, and our capital priorities have not changed,”
said Mike Sievert, CEO of T-Mobile, to Yahoo Finance Live at the Goldman Sachs Communacopia and Tech Conference held in San Francisco.
“It is to fund this historically great business plan, both organic and inorganic, core business as well as adjacencies.”
Following the announcement of the dividend, stocks of T-Mobile rose to 4% on Thursday afternoon.
“In 2021, we laid out an aspiration that was big and bold that we saw up to $60 billion in shareholder returns during our planning horizon,”
Sievert further added.
“This is the second installment: $19 billion over the next five quarters and, as part of that, our first-ever dividend — a $3 billion annual dividend. That’s $3.75 billion over the next five quarters that we see increasing at about 10% a year.”
The two telecom giants, Verizon and AT&T, are famous for their healthy dividends. While Verizon pays about $11 billion, AT&T touches about $8 billion in their annual stock dividend.
Looking forward, Sievert is attempting to capitalize over this inflection point.
“What investors expect from us is ongoing, reliable growth, profitable growth that translates into industry-leading cash flow growth — and that’s what we deliver,”
Sievert further told Yahoo Finance Live.
“We’ve been delivering it consistently over time, such that we believe it’s time to make the next installment of our longstanding aspirations around shareholder remuneration.”
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