AT&T raises dividend despite job cuts

On Friday, AT&T raised its quarterly share dividend by 2.5 percent to 41 cents a share, despite recent job cuts and a plan to cut spending in 2009 due to a slower economy. The announcement comes a week after AT&T said it will eliminate 12,000 jobs, or about 4 percent of its workforce, to deal with a decline in traditional phone sales as well as a weaker economy. AT&T Chief Executive Randall Stephenson said in a statement that the dividend reflects the board's confidence in its financial strength.