NEW YORK — AT&T Inc. raised its dividend Tuesday, announced an expanded share buyback and said it was seeing only small effects from the troubles in the U.S. economy.
At a conference with analysts in New York, AT&T touted a turnaround in its once-shrinking business of serving corporate clients, as well as strong performance from its wireless division.
It expects revenue to grow around 5 percent next year.
The company said it will buy back 400 million shares, which represent about 7 percent of the company’s stock, and would cost $15.16 billion. Also, AT&T’s quarterly dividend will rise to 40 cents a share from 35.5 cents.
AT&T also said it expects to have more than 1 million subscribers for its U-verse TV service by the end of next year.
Recent news reports said the San Antonio- based company was in talks to acquire Douglas County-based satellite-TV broadcaster Dish Network Corp., formerly known as EchoStar Communications Corp., which would have given AT&T ownership of a different route to reach customers. However, those talks likely have been shelved because of federal anti-collusion rules surrounding a spectrum auction in January.
Shares of EchoStar closed down $1.25, more than 3 percent, at $38.83.
