SBC Uses Cash Flow to Increase Dividend by 10.6%

The Board of Directors of SBC Communications approved a 10.6% increase in the company's quarterly dividend, from 28.25 cents a share to 31.25 cents a share, or 12 cents a share on an annual basis, from $1.13 to $1.25 a share. The board also authorized the buyback of 350 million common shares representing approximately 10% of SBC shares outstanding.


SBC Chairman and CEO Edward E. Whitacre Jr. described the actions as "a balanced approach that will allow us both to fund important growth initiatives over the next few years and return value directly to our shareowners." He said using the company's solid cash flows for these purpose reflected its conservative financial management.
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