T-Mobile US Dividend Boost Overshadowed by Major Shareholder Sales

T-Mobile US has announced a substantial 16% increase to its quarterly dividend, a move that highlights the telecommunications giant’s strong financial position and commitment to shareholder returns. However, this positive development coincides with significant stock sales by the company’s largest single shareholder, creating a confusing narrative for investors.

The dividend will rise from $0.88 to $1.02 per share, reflecting T-Mobile’s robust cash generation capabilities. This decision follows recently upgraded synergy expectations resulting from the company’s acquisition of UScellular, suggesting management confidence in future profitability.

Despite this shareholder-friendly announcement, Deutsche Telekom, which holds a 10% stake in T-Mobile US, has been systematically reducing its position. On September 15 and 16 alone, the German telecommunications company sold shares worth over $30 million at prices around $240 per... Read more...