T-Mobile authorizes shareholder return program of up to $19B

T-Mobile US (TMUS) announced that its Board of Directors has authorized a shareholder return program of up to $19.0B that will run through December 31, 2024. The shareholder return program is expected to consist of additional repurchases of shares of the company’s common stock and payment of cash dividends. The company intends to declare and pay its first dividend of approximately $750M in the fourth quarter of 2023 and then to pay approximately $3.0B in total additional dividends in 2024, with payments occurring each quarter during the year. The dividend amount paid per share is expected to grow by around 10% annually. The amount available under the shareholder return program for share repurchases will be reduced by the amount of any cash dividends declared and paid by the company. Deutsche Telekom AG (DTEGY) does not currently anticipate selling shares directly to the company under the shareholder return program, but DT has reserved the right to sell shares of the company’s common stock through one or more customary 10b5-1 plans any time after January 1, 2024. “Share repurchases and any dividends declared by the board and paid from time to time are expected to be made from available cash on hand and proceeds of one or more debt issuances or other borrowings, based on the company’s evaluation of market conditions and other factors. For the avoidance of doubt, the shareholder return program is in addition to the company’s previously announced $14.0B share repurchase program that the board authorized in September 2022,” the company stated in a regulatory filing.