While telecom giants AT (NYSE: T) and Verizon (NYSE: VZ) are known for paying generous dividends to investors, T-Mobile (NASDAQ: TMUS) has avoided paying dividends up until now. The company has returned cash to shareholders in the form of share buybacks, but never direct dividend payments.

That changes later this year. T-Mobile announced on Sept. 6 that it plans to declare its first quarterly dividend in the fourth quarter, with an expected total payment of approximately $750 million. In 2024, the company expects to pay out about $3 billion in dividends split across four quarterly payments. Based on the current share count, that works out to a quarterly dividend of about $0.63 per share.

One reason to avoid T-Mobile stock up to this point was its lack of a dividend. With the company set to dole out payments to shareholders, is it time to buy the stock?

Continue reading

Source Fool.com