T-Mobile Offers Massive $14B Stock Buyback But Hasn't Paid A Dividend Since 2015

T-Mobile US TMUS authorized a $14 billion stock buyback program that is set to run through Sept. 30, 2022, and may include $3 billion through the remainder of 2022.

The Bellevue, Washington-based company, which completed a $26-billion merger with Sprint in 2020, has increased its free cash flow position to $1.8 billion as of the second quarter of 2022.

T-Mobile was previously at $690 million in free cash flow in December 2015, per Macrotrends.

T-Mobile’s cash and cash equivalents in the first half of 2022 are $6.4 billion, and were $6.6 billion in 2021.

As T-Mobile records some of its highest revenues in the past ten years and increases its free cash flow position, it has opened the door for hefty buybacks, as a way to distribute its profits back to shareholders.

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Unfortunately, T-Mobile has not paid a dividend since Sept. 1, 2015, where it was paying a dividend yield of 6.81% or $2.75 per share annually. When comparing past fundamentals, we found that T-Mobile had total liabilities of $46 billion in December 2015, with recorded revenue of roughly $32 billion.

T-Mobile had total liabilities of $137 billion, with full-year revenue at $80 billion as of 2021, and after the completed merger with Sprint is when the jump in total liabilities and revenues took place.

Due to the merger with Sprint, and T-Mobile’s current debt positions, it is no mystery why the company is holding off dividend payments until further notice.