Will AT&T Sell These Assets?

Over the past few weeks, AT&T (NYSE:T) has offered hints that it is open to some asset monetization, in what may be an attempt to reassure investors that AT&T is committed to increasing dividend yields on an annual basis. Some of the assets that AT&T may be considering selling include its more than 10,000 wireless towers and its stake in Carlos Slim’s Latin American phone company.

According to RBC analyst Jonathan Atkin, via Bloomberg, “AT&T is actively considering the monetization of its tower assets in a similar fashion to several of its peers in the wireless industry.” Atkins estimates that the sale of AT&T’s cellphone towers alone could generate about $5 billion in cash.

Asset monetization could help offset some upcoming expenditure for Dallas-based AT&T. Besides its 4.9 percent annual dividend, AT&T is planning a network upgrade that will cost $14 billion, as well as a stock repurchasing plan that will cost $11 billion.