AT&T Increases Stockholder Dividend 2.3 Percent

28th consecutive annual increase in the quarterly dividend reflects confidence in cash flows, commitment to return value to stockholders

Dallas, Texas, December 16, 2011

AT&T Inc. (NYSE:T) announced today that its board of directors has approved a 2.3 percent increase in the company’s quarterly dividend paid to stockholders.

AT&T directors increased the quarterly dividend rate from $0.43 to $0.44 a share on a quarterly basis, which would be an increase from $1.72 to $1.76 a share on an annualized basis.

"Throughout the economic downturn, we've been very disciplined financially, which has given us strong cash flows and an ability to pay down debt while investing about $20 billion this year to support more customer usage," said Randall Stephenson, chairman and CEO of AT&T. "As a result, we're pleased to be able to increase our stockholders' quarterly dividend for an industry-leading 28th consecutive year. We know millions of our owners are individuals and they count on their AT&T dividend each quarter. It's a responsibility to our owners that we take seriously."

Today's announcement reflects AT&T's strong financial position, with a solid balance sheet and growing free cash flows.

The dividend will be payable on Feb. 1, 2012 to common stockholders of record on Jan. 10, 2012.