T-Mobile Raises Quarterly Dividend 14.7% to $1.17

T-Mobile US raised its quarterly dividend 14.7% to $1.17 a share from $1.02. The stock’s next ex-dividend date is November 25, 2026, and the payment is scheduled for December 10, 2026. The new annual dividend is $4.68 a share.

Why the dividend changed

T-Mobile’s declaration provided no specific operational reason for the increase. It said the board approved the higher cash dividend for issued and outstanding common shares and specified the payment timetable. The financial context indicates that the increase is part of the company’s broader capital-return program rather than a response to a split, merger or spin-off. T-Mobile’s dividend announcement

The latest available quarterly results showed expanding cash generation. In the second quarter, net cash from operating activities grew 7% from a year earlier and adjusted free cash flow grew 4%. Service revenue increased 9%, while net income grew 1% after absorbing costs associated with the integration of UScellular. T-Mobile also raised its full-year guidance for operating cash flow and adjusted free cash flow. T-Mobile’s second-quarter results

Chief Executive Srini Gopalan said the quarter demonstrated progress toward the company’s objectives, supported by account growth, higher revenue per account and continued investment in network and technology. T-Mobile describes its shareholder-return program as part of a balanced capital-allocation strategy that funds core and strategic investment while returning cash to shareholders. That combination of cash-flow growth and an established return framework provides the business context for the higher dividend, although the company did not explicitly identify either factor as the cause. T-Mobile’s second-quarter Form 10-Q

Dividend track record

T-Mobile’s record is short because it began paying a dividend in 2023. It paid $0.65 a share that year through a single payment. The annual total increased 335.4% to $2.83 in 2024, but that outsized change largely reflects the comparison with a partial first year. The total then rose 29.3% to $3.66 in 2025.

The quarterly sequence shows a more useful pattern. T-Mobile paid $0.88 for four consecutive quarters beginning with the November 27, 2024, ex-dividend date. It then paid $1.02 for four consecutive quarters beginning with the November 26, 2025, ex-dividend date. The new $1.17 rate represents another annual step-up in the late-year payment cycle. T-Mobile has recorded 2 consecutive years of dividend growth.

The pattern is one of relatively large annual increases followed by stable quarterly payments, rather than small changes every quarter. The new rate would provide $468.00 of annual income for every 100 shares if maintained across four quarterly payments.

Is the dividend covered?

The dividend consumes 41% of earnings. That leaves a majority of earnings outside the dividend, providing room for network investment, debt service, acquisitions and share repurchases. It also means the latest increase did not push the earnings payout ratio close to full distribution.

SmarterDividends assigns T-Mobile a dividend safety score of 62 and rates the dividend C. That falls within the borderline range of 50-65. In plain terms, current earnings coverage provides a cushion, but the short payment history and competing demands on capital warrant more caution than a stronger safety grade would indicate.

Yield and valuation

At a share price of $146.93, T-Mobile’s $4.68 annual dividend produces a 3.19% forward yield. That is below the Communication Services sector median forward yield of 3.81%, so the stock offers less current income than the sector midpoint despite the latest increase.

The shares have recorded a 29.9% loss over one year. SmarterDividends estimates fair value at $202.40 and classifies the shares as undervalued, representing 38% upside to that estimate. The fair-value figure is a valuation assessment rather than a forecast, and it is separate from the dividend’s safety and coverage.

What to watch

The immediate date is November 25, 2026, when the shares are scheduled to trade ex-dividend for the $1.17 payment. The cash payment is due December 10, 2026.

The next quarterly report will provide the next check on the operating support for the dividend. Relevant measures include service-revenue growth, operating cash flow, adjusted free cash flow and costs tied to the UScellular integration. T-Mobile’s latest guidance called for full-year net cash from operating activities of $28.4 billion to $28.8 billion and adjusted free cash flow of $18.4 billion to $18.8 billion. The company’s current shareholder-return authorization runs through December 31, 2026, making its next capital-allocation update another concrete item to monitor.