BT to Up Dividend by 10% for Next 3 Years

Telecom group BT is leading the FTSE 100 gainers following a strong earnings report; a 13% rise in dividend and a £6 billion investment in broadband

Karen Kwok 5 May, 2016 | 3:12PM

BT Group (BT.A), the largest telecoms group in the UK, this morning reported a 15% increase of its latest quarter profit to £3 billion, resulting in significant dividend growth.

The company revealed its plan for a 13% increase of the full-year dividend to 14p per share, from 12.4p the year before. It also proposes to raise its dividend by more than 10% in each of the next two financial years, reflecting the company’s “strong overall performance for the year”, according to its chief executive Gavin Patterson.

Part of its outlined plans also includes a £6 billion investment in “ultrafast” broadband and 4G coverages in the UK over the next three years. The company unveiled integration of its acquisition of mobile operator EE, which was cleared by regulators earlier this year, is going well. The stock is rated three-star by Morningstar analysts meaning they consider it fairly valued.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
BT Group PLC110.00 GBX1.99
Vodafone Group PLC123.42 GBX0.64

About Author

Karen Kwok

Karen Kwok  is a Reporter for Morningstar.co.uk

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