Few deny that the current market contains considerable uncertainty: a subprime mortgage and related asset default issue which seeks a solution, declining corporate earnings, high energy prices and a wary consumer have put investors and citizens on guard. Sound business decisions in these choppy waters require research, careful planning and verve, and on Tuesday, AT&T (NYSE: T) may have accomplished just that.
AT&T announced that it would buy back $15.2 billion of its stock, and also said it would increase its quarterly dividend by 12.6% to 40 cents from 35.5 cents. AT&T's shares surged $2.02 to $39.92 Tuesday at mid-day on the news.
The company also set a long-term target of 30 million subscribers by 2010 for its TV service, which is delivered over phone lines.
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