T-Mobile US (TMUS) DIvidends Date & History

Key Takeaways

• TMUS offers a forward dividend yield of approximately 2.08%, with quarterly payments of $1.02 per share.
• Dividend initiated in late 2023; annual payouts grew from $0.65 in 2023 to $3.66 in 2025.
• Payout ratio of 37.65% indicates strong sustainability, well-covered by earnings and free cash flow.
• Free cash flow reached $15.4 billion TTM as of late 2025, amply supporting dividends amid robust cash generation.
• Lower yield than peers like VZ (5.6%) and T (3.8-4%), but superior growth potential.
• Balanced capital return includes dividends and $37 billion in buybacks since 2022.

Dividend Overview

T-Mobile US (TMUS), the leading U.S. wireless carrier, launched its quarterly dividend program in December 2023 with an initial payout of $0.65 per share. The company now pays $1.02 quarterly, equating to an annualized forward dividend of $4.08 per share and a yield of about 2.08% at recent prices around $196. This modest yield reflects TMUS's transition from a pure growth stock to one emphasizing total shareholder returns, including dividends and buybacks. Payments occur in March, June, September, and December, with the next ex-dividend date on May 29, 2026, and payment on June 11, 2026. While not a high-yield play, TMUS positions itself as a dividend growth stock, leveraging post-Sprint merger synergies and 5G leadership for rising payouts.

Dividend History and Growth

TMUS began regular quarterly dividends in Q4 2023 at $0.65 per share, marking its entry into shareholder distributions after years of reinvesting in network expansion. In 2024, three payments remained at $0.65, with Q4 rising to $0.88, totaling $2.83 annually—a jump from 2023's $0.65. 2025 saw the first three quarters at $0.88 and Q4 at $1.02, yielding $3.66 for the year. Into 2026, Q1 and Q2 hold at $1.02, signaling steady progression. This reflects a dividend growth rate exceeding 20% annually in recent periods, driven by free cash flow (FCF) growth from $7.7 billion in 2022 to $13.6 billion in 2023 and $15.4 billion TTM through late 2025. No cuts have occurred, underscoring commitment to consistent increases tied to operational cash generation.

Dividend Sustainability and Payout Ratio

TMUS's dividend appears highly sustainable, with a trailing payout ratio of 37.65%—well below 60%, leaving ample room for growth or reinvestment. Earnings per share comfortably cover the $4.08 forward annual dividend, while FCF per share TTM stands at $13.65 against $3.80 paid out, yielding FCF coverage over 3.6 times. Total FCF hit $15.4 billion TTM as of December 2025, up from prior years, fueled by operating cash flows near $19 billion annually and moderated capital expenditures post-5G buildout. Debt levels are manageable at a targeted 2.5x leverage ratio, with strong EBITDA growth supporting interest obligations. This conservative profile, combined with projected FCF expansion to $18-19 billion by 2027, positions dividends for ongoing reliability and potential hikes.

Dividend Compared to Industry Peers

In the telecom sector, TMUS's 2.08% forward yield trails legacy giants like Verizon (VZ) at around 5.6% and AT&T (T) at 3.8-4%. VZ's higher payout stems from decades of dividend aristocrat status but carries a 50-60% FCF payout ratio amid heavier debt ($144 billion). T offers mid-tier yield post-2022 cut, with improved coverage but slower growth. TMUS sacrifices yield for a lower 38% payout ratio and superior FCF margins (17.5% LTM), enabling faster dividend ramps and buybacks. For growth-oriented income seekers, TMUS provides competitive total returns via appreciation plus rising payouts, contrasting peers' higher but mature yields.

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Is This Stock Attractive for Dividend Investors?

TMUS suits dividend growth investors prioritizing payout acceleration over immediate high yield, given its short but robust history of increases from $0.65 to $1.02 quarterly since 2023. Those seeking total shareholder returns may appreciate the blend of 2% yield, substantial buybacks ($37 billion since 2022), and stock upside from market-leading 5G subscriber gains and FCF expansion. Conservative income seekers might prefer peers' loftier yields, but TMUS's low 38% payout and 3.6x FCF coverage offer safety for long-term holders. Balanced portfolios could allocate to TMUS for diversification, capturing telecom growth while building dividend income. Its profile appeals less to pure yield chasers but aligns with investors valuing sustainability and potential 20%+ annual dividend growth amid projected earnings rises.

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