Summary
T-Mobile US, Inc. (TMUS) announced a significant shareholder return program on September 6, 2023, authorizing up to $19.0 billion to be returned to shareholders through December 31, 2024. This program will be comprised of both share repurchases and cash dividends. The company plans to initiate dividend payments in Q4 2023 with approximately $750 million and expects to pay around $3.0 billion in additional dividends throughout 2024, with a projected annual growth of approximately 10% per share. This new program is in addition to T-Mobile's previously authorized $14.0 billion share repurchase program. The company intends to fund these returns through existing cash on hand and potential debt issuances, depending on market conditions and capital needs. While Deutsche Telekom (DT) does not currently plan to sell shares to T-Mobile under this program, they reserve the right to do so via 10b5-1 plans after January 1, 2024. Investors should note that the specific execution of repurchases and dividend payments is discretionary and subject to market conditions and board approval.
Key Highlights
- 1T-Mobile US has authorized a new shareholder return program of up to $19.0 billion, running through December 31, 2024.
- 2The program will include both share repurchases and cash dividends.
- 3The company plans to pay approximately $750 million in dividends in Q4 2023 and about $3.0 billion in 2024, with an expected annual dividend per share growth of around 10%.
- 4This $19.0 billion program is additive to the existing $14.0 billion share repurchase authorization.
- 5Funding for the shareholder returns is expected from available cash and potential debt issuances.
- 6Deutsche Telekom has reserved the right to sell shares through 10b5-1 plans after January 1, 2024, but not directly to T-Mobile under this program.
- 7The execution and amounts of share repurchases and dividends are discretionary and subject to market conditions and board approval.